Two notable names in beauty are joining forces thanks to a recently closed deal, and it marks a major development in clean beauty. E.L.F. Cosmetics has acquired W3LL People for $27 million. The move marks the first acquisition for E.L.F. and will launch them into the clean beauty market.
According to WWD, E.L.F. intends to keep all three founders of W3LL People on staff to help the brand learn the clean beauty space and incorporate those formulas into its existing lineup. Known for its affordable pricing, E.L.F.'s decision to acquire W3LL People was partially predicated on the clean beauty's brand similar approach to beauty at accessible price points. E.L.F. shoppers are unlikely to see any major shifts in pricing due to the merger. Instead, cleaner formulas at low costs are the goal.
E.L.F. chairman and CEO Tarang Amin tells WWD, "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.’s strategy and we believe there are a number of synergies to be realized on both the cost and distribution fronts."
While this is the brand's first acquisition, E.L.F. has continued to rise in popularity since it's inception in 2004 when it began as a $1-based brand. Products that act as alternatives to more expensive items, like the Putty Primer which many cite as comparable to Tatcha's Silk Canvas, and a dedication to producing new products in short time frames has made the brand a competitor in the marketplace.
According to a 2017 piece by Business of Fashion, the brand works on design and packaging while also formulating products allowing them to release in as little as 13 weeks. With its low price point (thanks to small batch creation) and quick production, the brand has continued to rise to the top of the market.
Now, with E.L.F.'s acquisition of W3LL People, consumers will see even more products emerging from the brand that feature clean ingredients alongside its existing vegan, cruelty-free commitments.