Hailey Bieber sells Rhode in a deal valued at US$ 1 billion. The acquisition marks e.l.f.’s largest purchase to date. It signals the growing demand for celebrity-led beauty lines among Gen Z and millennial consumers. Here’s everything you need to know.
Hailey Bieber’s skincare and makeup brand, Rhode, is being acquired by e.l.f. Beauty Inc. The acquisition deal is worth US$ 1 billion. The brand will pay US$ 800 million in a combination of cash and stock to Rhode’s shareholders. An additional US$ 200 million earn-out is based on performance-based milestones.
e.l.f. Beauty is famous for its affordable product range starting at just US$ 2. It is available in major U.S. retailers like Walmart, Target, and Ulta Beauty. With this acquisition, e.l.f. aims to expand its portfolio by bringing in a celebrity-endorsed prestige brand. “Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible,” said e.l.f. CEO Tarang Amin, calling the brand poised for “rocketship growth.”
Hailey Bieber to remain involved
Founded in 2022 by Hailey Bieber and partners Lauren and Michael D. Ratner, Rhode gained popularity through social media, particularly TikTok, with viral products like the Peptide Lip Treatment. The brand exclusively sells through its website and pop-up stores, and has reported US$ 212 million in sales for the year ending March 31.
Even though Hailey Bieber sells Rhode, she will continue to play a key role as founder and strategic advisor, helping guide the brand’s next phase of growth.
Global expansion and retail push
Rhode will hit shelves at Sephora stores across the U.S. and Canada this fall. The next step in line will be expansion into the UK.
e.l.f. hopes the acquisition will accelerate global reach and innovation, aligning with its strategy to offer prestige products at accessible prices.
“This marks an incredible opportunity to elevate and accelerate our ability to reach more of our community,” said Hailey Bieber in a statement.
This acquisition follows e.l.f.’s US$ 355 million purchase of skincare brand Natrium in 2023. It reinforces its aggressive growth strategy in the beauty and skincare sector.