Shares of e.l.f. Beauty saw a surge on Tuesday following the announcement of its acquisition of skin care brand Naturium for $355 million. The stock price rose by 8.6% to $133.14 at 1:40 pm E.T., with an impressive year-to-date increase of over 100% and a tripling in value over the past year.
This strategic move by the cosmetics company is expected to expand its presence in the skin care market, accounting for 18% of its retail sales. Naturium, known for its vegan, paraben-free, and cruelty-free beauty products, aligns perfectly with e.l.f.’s existing portfolio. With an average selling price of approximately $18, Naturium products are currently available at Target and Amazon.
Chief Executive Tarang Amin expressed enthusiasm about the acquisition, stating, “Naturium joining e.l.f. Beauty presents a unique opportunity to significantly accelerate the potential we see in skin care.”
To finance the transaction, e.l.f. plans to utilize its cash reserves, borrowings from its existing credit facility, and $70 million worth of e.l.f. stock issued directly to founders and key management. The deal is expected to be finalized around September 30.
