e.l.f. Beauty Acquires Hailey Bieber's Rhode Skincare Brand for $1 Billion
May 28, 2025 – In a landmark deal within the beauty industry, e.l.f. Beauty has announced its acquisition of Rhode, the skincare brand founded by model and entrepreneur Hailey Bieber, for a total value of $1 billion. This strategic move aims to expand e.l.f. Beauty's portfolio and strengthen its position in the skincare market.
Deal Structure and Financials
The acquisition comprises:
- $600 million in cash
- $200 million in newly issued e.l.f. Beauty common stock
- An additional potential earnout of $200 million based on Rhode's performance over the next three years
Rhode, launched in 2022, has demonstrated impressive growth, recording $212 million in net sales in the 12 months ending March 31, 2025. The brand is known for its minimalist skincare products and has garnered a significant following, particularly among Gen Z and millennial consumers.
Hailey Bieber's Continued Involvement
Hailey Bieber will remain actively involved with Rhode, taking on the roles of Chief Creative Officer and Head of Innovation. In these positions, she will oversee product development, creative direction, and marketing strategies. Additionally, Bieber will serve as a strategic advisor to e.l.f. Beauty, contributing to the company's broader vision and growth initiatives.
Expansion Plans
Currently, Rhode's products are exclusively available online. However, plans are underway to expand the brand's retail presence through partnerships with Sephora stores in North America and the U.K. by the end of the year. This move is expected to enhance Rhode's accessibility and reach a wider customer base.
Strategic Significance
e.l.f. Beauty's acquisition of Rhode aligns with its mission to offer high-quality, affordable beauty products. The addition of Rhode to its portfolio complements existing brands like Naturium and Keys Soulcare, and reinforces e.l.f. Beauty's commitment to innovation and inclusivity in the beauty industry.
For more information, refer to the official press release: e.l.f. Beauty Announces Definitive Agreement to Acquire rhode in $1 Billion Deal.