Hailey Bieber’s Rhode Acquired by e.l.f. in $1B Deal
In a landmark move poised to reshape the beauty industry, e.l.f. Beauty has announced its acquisition of Hailey Bieber’s skincare brand, Rhode, in a deal valued at up to $1 billion. This strategic partnership combines cash, stock, and performance-based incentives, marking one of the most significant celebrity beauty brand acquisitions to date.
💼 Deal Overview
The acquisition comprises $600 million in cash and $200 million in newly issued e.l.f. common stock, with an additional potential earnout of $200 million based on Rhode’s growth over the next three years. This structure underscores e.l.f. Beauty’s confidence in Rhode’s continued expansion and market relevance.
Rhode, launched in June 2022, has demonstrated impressive growth, generating $212 million in net sales over the past year. The brand’s rapid ascent is attributed to its minimalist product line and Hailey Bieber’s influential presence in the beauty industry.
🌟 Hailey Bieber’s Continued Involvement
Despite the acquisition, Hailey Bieber will maintain a significant role within Rhode as Chief Creative Officer and Head of Innovation. She will also serve as a strategic advisor to the combined entity, ensuring the brand’s original vision and aesthetic remain intact.
Bieber’s influence is a driving force behind Rhode’s success. In 2024, she generated $2.2 billion in Earned Media Value (EMV), positioning her as the most impactful beauty influencer of the year. Her commitment to creating essential, accessible skincare products has resonated with a broad consumer base.
🛍️ Expansion Plans and Market Impact
Currently, Rhode’s products are available exclusively online. However, the brand plans to expand into physical retail through a partnership with Sephora in North America and the U.K. by the end of the year. This move aims to increase accessibility and tap into new customer segments.
The acquisition has positively impacted e.l.f. Beauty’s market performance. Following the announcement, the company’s stock rose 12% in premarket trading, reflecting investor confidence in the strategic alignment and growth potential of the combined entities.
🏢 Company Profiles
e.l.f. Beauty
- Founded: 2004 by Joseph Shamah and Scott-Vincent Borba
- Headquarters: Oakland, California, USA
- CEO: Tarang Amin
- Employees: Approximately 475 (as of 2024)
- Product Lines: e.l.f. Cosmetics, e.l.f. Skin, Well People, Keys Soulcare, Naturium
- Market Presence: Products available in 18 countries, including the U.S., Canada, U.K., and Australia
- Financials: Reported revenues of over $1 billion in fiscal year 2024
Rhode
- Founded: 2022 by Hailey Bieber
- Headquarters: Los Angeles, California, USA
- CEO: Melanie Bender
- Product Lines: Peptide Glazing Fluid, Barrier Restore Cream, Peptide Lip Treatment, and recently expanded into color cosmetics
- Market Presence: Strong online presence with plans for retail expansion through Sephora
- Financials: Achieved $212 million in net sales between April 2024 and March 2025
📈 Funding and Investment
e.l.f. Beauty
- Public Listing: Traded on the NYSE under the ticker symbol ELF
- Major Acquisitions:
- Naturium for $355 million in 2023
- Rhode for up to $1 billion in 2025
Rhode
- Initial Funding: Primarily self-funded by Hailey Bieber
- Strategic Partner: One Luxury Group
- Philanthropy: Established the Rhode Futures Foundation, committing 1% of sales to support women, particularly women of color
🌍 Market Impact and Future Outlook
The acquisition of Rhode by e.l.f. Beauty signifies a strategic alignment aimed at leveraging e.l.f.’s operational expertise and Rhode’s brand appeal. The combined entity plans to expand Rhode’s global footprint, enhance product innovation, and maintain the brand’s commitment to accessible, high-quality skincare.
e.l.f. Beauty’s CEO, Tarang Amin, highlighted the potential for “rocketship growth” through this partnership, emphasizing the shared values and disruptive approach both brands bring to the beauty industry.
❓ Frequently Asked Questions (FAQs)
Will Hailey Bieber remain involved with Rhode after the acquisition?
Yes, Hailey Bieber will continue as Chief Creative Officer and Head of Innovation, ensuring the brand’s vision and product development remain consistent.
What are the plans for Rhode’s product availability?
Rhode plans to expand into physical retail through Sephora in North America and the U.K. by the end of the year, increasing accessibility for consumers.
How does this acquisition benefit e.l.f. Beauty?
The acquisition allows e.l.f. Beauty to diversify its portfolio with a rapidly growing skincare brand, tap into new customer segments, and leverage Rhode’s strong online presence and brand loyalty.
What is the Rhode Futures Foundation?
Established by Hailey Bieber, the Rhode Futures Foundation commits 1% of sales to support women, particularly women of color, through partnerships with nonprofit organizations.
