E.l.f. Beauty Acquires Hailey Bieber's Rhode in $1 Billion Deal

E.l.f. Beauty has announced its acquisition of Hailey Bieber's skincare brand, Rhode, in a deal valued at up to $1 billion. The agreement includes an initial payment of $600 million in cash and $200 million in newly issued E.l.f. stock, with an additional $200 million contingent on Rhode's performance over the next three years.

Founded in 2022 by model and entrepreneur Hailey Bieber, Rhode has rapidly gained prominence in the skincare industry. The brand reported $212 million in net sales for the 12 months ending March 31, 2025. Initially operating as a direct-to-consumer brand, Rhode plans to expand into Sephora stores across North America and the U.K. by the end of 2025.

Post-acquisition, Hailey Bieber will continue with Rhode as Chief Creative Officer and Head of Innovation, overseeing creative direction, product development, and marketing strategies. She expressed enthusiasm about the partnership, stating, "Just three years into this journey, our partnership with e.l.f. marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally."

This acquisition marks E.l.f. Beauty's largest to date and signifies its strategic expansion into the prestige skincare market. The deal is expected to close in the second quarter of E.l.f.'s fiscal 2026. Tarang Amin, E.l.f. Beauty's Chairman and CEO, highlighted the alignment between the two brands, stating, "e.l.f. Beauty found a like-minded disruptor in rhode. rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible."

The acquisition underscores a broader trend of established beauty companies investing in celebrity-founded brands to capture younger demographics and expand their market reach. Rhode's success, particularly among Gen Z consumers, reflects the growing influence of social media and direct-to-consumer models in the beauty industry. This move also highlights the increasing value placed on brands that offer minimalist, high-performance products, aligning with current consumer preferences for simplicity and efficacy.

The transaction comprises $600 million in cash and $200 million in newly issued E.l.f. stock, with an additional $200 million contingent on Rhode's performance over the next three years. This structure indicates E.l.f. Beauty's confidence in Rhode's growth trajectory and its commitment to integrating the brand into its portfolio.

While celebrity-founded beauty brands have been acquired by larger companies in the past, the scale of this deal is notable. It reflects the significant impact that influencer-driven brands can have in the market and the willingness of established companies to invest heavily in such entities to stay competitive.

E.l.f. Beauty's acquisition of Rhode not only diversifies its product offerings but also positions the company to tap into the growing demand for prestige skincare products. As the beauty industry continues to evolve, such strategic moves may become increasingly common as companies seek to align with emerging consumer trends and preferences.