Why e.l.f. Beauty Stock Is Soaring Today

e.l.f. Beauty, Inc. ELF shares are trading higher Tuesday after the company announced an agreement to acquire Naturium.

What To Know: e.l.f. Beauty has signed a definitive agreement to acquire Naturium for $355 million in a combination of cash and stock.

The acquisition of Naturium, a fast-growing, high performance skin care brand, is expected to double e.l.f. Beauty's presence in skin care to approximately 18% of retail sales.

Naturium saw net sales grow at an approximately +80% CAGR over the last two years, with approximately $90 million of net sales expected this year.

"We are thrilled to welcome Naturium to the e.l.f. Beauty family. Naturium aligns with e.l.f. Beauty's vision to create a different kind of beauty company with brands built to disrupt norms, shape culture and connect communities through positivity, inclusivity and accessibility. Nearing two decades in business, we continue to deliver exceptional results," said Tarang Amin, e.l.f. Beauty's Chairman and CEO.

"In August, we raised our Fiscal 2024 outlook after posting quarterly net sales growth of 76%, marking 18 consecutive quarters of more than 20% sales growth on average. e.l.f. SKIN is one of the fastest growing skin care brands, and Naturium joining e.l.f. Beauty presents a unique opportunity to significantly accelerate the potential we see in skin care."

The transaction is expected to close around September 30, 2023.

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ELF Price Action: Shares of ELF were up 8.42% at $132.95 at the time of publication, according to Benzinga Pro.

Image by Arek Socha from Pixabay