e.l.f. Acquires Clean Beauty Company W3LL PEOPLE to Expand Brand Portfolio
February 24 2020 - 4:02PM
Business Wire
– e.l.f. to Leverage its Operational
Capabilities in Fast Growing Clean Beauty Segment–
– $27 Million All Cash Deal Expected to be
Accretive in Fiscal 2021 –
e.l.f. Beauty (NYSE: ELF) today announced the acquisition of
cruelty-free, clean beauty company W3LL PEOPLE for $27 million in
cash. e.l.f. plans to leverage its marketing, customer
relationships and operational capabilities to drive the W3LL PEOPLE
brand. e.l.f. expects W3LL PEOPLE to contribute approximately $7
million in net sales and $0.01 to its adjusted earnings per share
on a fully diluted basis in fiscal 2021.
“We are pleased to bring clean beauty pioneer W3LL PEOPLE under
the e.l.f. Beauty umbrella as our first strategic extension. Clean
beauty is a strategically important segment given consumer
sentiment and strong growth rates. W3LL PEOPLE has a long history
of expertise and credibility in clean beauty that works. Their
brand values and market opportunity align closely with e.l.f. and
we believe there are a number of synergies to be realized on both
the cost and distribution fronts,” said Tarang Amin, e.l.f. Beauty
Chairman and Chief Executive Officer.
W3LL PEOPLE was launched in 2008 by James Walker, Shirley
Pinkson and Dr. Renee Snyder to provide high-quality, clean
cosmetics. The company is cruelty-free, and its plant-based
product-line – which contains no fillers, propylene glycol,
petrochemicals or petroleum byproducts – includes forty EWG
VERIFIED™ products, a leading standard of “clean and healthy” in
the beauty space. W3LL PEOPLE has an emerging presence at leading
national retailers including Target and Whole Foods; through
natural specialty retailers such as Credo Beauty and The Detox
Market; and online through Amazon.com, Ulta.com and
W3LLPEOPLE.com.
“We have been transparent about our desire to pursue strategic
extensions that can leverage our strengths and bring new
capabilities to e.l.f., and we have been disciplined in this
process,” said Tarang Amin. “W3LL PEOPLE is rooted in a deep and
passionate understanding of clean beauty and shares our mission of
making the best of beauty accessible. We believe that W3LL PEOPLE’s
twelve years of clean beauty experience and high-quality product
line, in combination with e.l.f.’s multiple strengths from
operations to marketing, will be attractive to our retail partners
– including Target, our longest-standing customer.”
“W3LL PEOPLE has a remarkable history of breaking beauty
boundaries, and the acquisition by e.l.f. is an incredible
milestone in our effort to make clean beauty accessible,” said
James Walker, co-founder of W3LL PEOPLE. “We feel tremendously
grateful for our brand’s success and the extraordinary team that
helped build it.”
William Hood & Company, LLC served as exclusive financial
advisor to W3LL PEOPLE in the transaction.
Conference Call
e.l.f. Beauty will hold a conference call today, February 24,
2020, at 5:00 p.m. ET to discuss the acquisition. The U.S. toll
free dial-in for the conference call is (877) 407-3982 and the
international dial-in number is (201) 493-6780. The conference call
will also be webcast live at:
http://investor.elfcosmetics.com/news-and-events/events and remain
available for 7 days. A telephone replay of this call will be
available at 7:30 p.m. ET on February 24, 2020, until 11:59 p.m. ET
on March 2, 2020, and can be accessed by dialing the U.S. toll free
dial-in, (844) 512-2921 or the international dial-in, (412)
317-6671, and entering replay pin number 13699232.
About e.l.f. Beauty
Since 2004, e.l.f. has made the best of beauty accessible to
every eye, lip and face. We make high-quality, prestige-inspired
cosmetics and skin care products at an extraordinary value and are
proud to be 100% vegan and cruelty-free. As one of the first online
beauty brands, e.l.f. has a passionate social following, national
distribution at leading retailers such as Target, Walmart and Ulta
Beauty, and a growing international presence. Learn more by
visiting www.elfcosmetics.com.
Forward-looking statements
This press release contains forward-looking statements within
the meaning of the federal securities laws, including those
statements relating to e.l.f. Beauty’s plans to leverage its
marketing, customer relationships and operational capabilities to
drive the W3LL PEOPLE brand, e.l.f. Beauty’s expectations regarding
W3LL PEOPLE’s contributions to e.l.f. Beauty’s financial results,
e.l.f. Beauty’s beliefs regarding synergies from the acquisition of
W3LL PEOPLE, and e.l.f. Beauty’s beliefs regarding the success of
the acquisition of W3LL PEOPLE. These forward-looking statements
are based on management's current expectations, estimates,
forecasts, projections, beliefs and assumptions and are not
guarantees of future performance. Although e.l.f. Beauty believes
that the expectations reflected in the forward-looking statements
are reasonable, actual results and the timing of selected events
may differ materially from those expectations. Factors that could
cause actual results to differ materially from those in the
forward-looking statements include, among other things, the risks
and uncertainties that are described in e.l.f. Beauty’s most recent
Quarterly Report on Form 10-Q and Annual Report on Form 10-K, as
updated from time to time in e.l.f. Beauty’s SEC filings, as well
as risks associated with e.l.f. Beauty’s acquisition of W3LL
PEOPLE, including e.l.f. Beauty’s ability to achieve the
anticipated benefits of the transaction, e.l.f. Beauty’s ability to
successfully integrate W3LL PEOPLE’s operations, and unexpected
costs, charges or expenses. Potential investors are urged to
consider these factors carefully in evaluating the forward-looking
statements. These forward-looking statements speak only as of the
date hereof. Except as required by law, e.l.f. Beauty assumes no
obligation to update or revise these forward-looking statements for
any reason, even if new information becomes available in the
future.
Note regarding non-GAAP financial measures
This press release includes references to adjusted diluted
earnings per share, a non-GAAP measure. e.l.f. Beauty is not able
to provide a quantitative reconciliation of adjusted diluted
earnings per share to the corresponding diluted earnings per share
GAAP measure without unreasonable efforts. e.l.f. Beauty cannot
provide meaningful estimates of the non-recurring charges and
credits excluded from adjusted diluted earnings per share due to
the forward-looking nature of the estimate and its inherent
variability and uncertainty. For the same reasons, e.l.f. Beauty is
unable to address the probable significance of the unavailable
information.
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version on businesswire.com: https://www.businesswire.com/news/home/20200224005813/en/
Investors: Willa McManmon VP, IR and Corporate
Communications, e.l.f. Cosmetics (650) 960-5177 Media:
Alecia Pulman ICR, Inc. (203) 682-8200
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