After 18 consecutive quarters of growth amongst its brands, E.l.f. Beauty is expanding its portfolio.

The parent company of E.l.f. Cosmetics, W3ll People and Keys Soulcare has signed an agreement to accumulate Naturium for $355 million, it revealed Tuesday. It’s a part of a broader strategy to present the corporate cachet in skin, which could comprise 18 percent of retail sales after the sale is accomplished, which is predicted to shut around Sept. 30.

Naturium is sold at Goal, Amazon and Naturium.com, amongst other partners globally. It boasts a mean price of $18 per product, which include its hero body wash, vitamin C complex serum and moisturizer with SPF 50.

The acquisition confirms an earlier WWD report that Naturium was mulling deal options. Based on a press release from E.l.f. Beauty, Naturium is slated to achieve $90 million in net sales this yr, and the corporate expects Naturium so as to add $48 million in net sales for its fiscal 2024 yr.

“We’re thrilled to welcome Naturium to the E.l.f. Beauty family,” said Tarang Amin, E.l.f. Beauty’s chairman and chief executive officer, in a press release. “Nearing 20 years in business, we proceed to deliver exceptional results. In August, we raised our fiscal 2024 outlook after posting quarterly net sales growth of 76 percent, marking 18 consecutive quarters of greater than 20 percent sales growth on average. E.l.f. Skin is one in every of the fastest-growing skincare brands, and Naturium joining E.l.f. Beauty presents a novel opportunity to significantly speed up the potential we see in skincare.”

In an interview, Amin noted that Naturium would proceed to operate independently in L.A. “Sometimes, you do acquisitions based on synergies, and this may be very much a growth acquisition. So we plan to maintain your entire Naturium team,” he said.

A Jefferies note commended the move, saying, “We favor E.l.f.’s further diversification of its portfolio,” comparing Naturium’s current distribution with that of E.l.f.’s 10 years ago. E.l.f.’s stock price closed the day at $133.63, an almost 9 percent increase.

Naturium was founded in 2019 under the Los Angeles-based brand accelerator The Center. In 2020, Susan Yara joined the brand and in 2021, The Center took an investment from Prelude Growth Partners. Apart from the 80 percent compound annual growth rate, Amin said the brand’s strategy dovetailed nicely with E.l.f. Beauty’s.

“Our strategies couldn’t be more aligned. We make the very best of beauty accessible to each eye, lip, face and skin concern. They make the very best of skincare accessible. The brand complements E.l.f. Skin, which has really strong momentum.”

Amin said E.l.f. is the biggest cosmetics and skincare brand at Goal Corp. “by a large margin,” adding that with Naturium, “we are able to leverage our relationship and our strength of Goal to get Naturium even greater presence inside Goal,” in addition to Amazon.

Eventually, international expansion will even be on the docket. Naturium is sold in Space NK within the U.K. “Given how rapidly we’re expanding internationally, it’s just natural to bring one other growth brand to our international retailers,” Amin said.

E.l.f. Beauty acquired W3ll People and incubated Keys Soulcare, Alicia Keys’ skincare line, in 2020. Amin didn’t rule out further acquisitions. “Even with this acquisition, our net debt to EBITDA ratio remains to be lower than 1.5 times,” he said. “We still have loads of capability. If we saw one other asset like Naturium, that excited us and fit our strategy well and we saw a number of growth, we are able to actually do more.”

“We’ve built an incredible brand, with quite a few superstar formulas, a dedicated community and a world class team in lower than 4 years,” said Susan Yara, Naturium’s founder, in a press release. “I actually have admired E.l.f., and their deep commitment to being a special form of beauty company, for years now. They care about their community and their employees, which is really meaningful to me, especially as a female founder. With our complementary missions and cultures, I do know E.l.f. Beauty shall be the perfect partner as we expand our reach, and proceed to make high performance skincare accessible for all.”