Okay, so e.l.f Beauty Bought Naturium — Here's What It Means
What the $355 million USD buyout says about the skincare market.
e.l.f Beauty is expanding its portfolio as a parent company, announcing its plans to acquire TikTok viral skincare brand Naturium for a cool $355 million USD, marking e.l.f’s Beauty’s biggest deal to date.
The parent company is the owner of e.l.f. Cosmetics, Well People, and Keys Soulcare all of which are popular brands in the beauty industry. The acquisition etches out a significant message that the Naturium on the skincare market is strong in awareness and profitability. Naturium is expected to achieve impressive financial results this year, with projected net sales of $90 million and adjusted EBITDA of over $17 million USD.
For many beauty brands, the goal while raising capital is to become EBITDA neutral. In general, EBITDA measures a company’s overall financial success before taxes, interest, earnings and depreciation. EBITDA neutral is when all financials for the company are leveled. To be neutral is when the company’s expenses match its revenue and won’t affect the EBITDA status — making a better outcome for the brand.
e.l.f Beauty’s deal with Naturium is expected to close around September 30.
