Yesterday, according to report, E.l.f. Beauty has announced a landmark agreement to acquire Hailey Bieber’s skincare brand, Rhode, in a deal at $1 billion. The acquisition, revealed jointly by both companies on Wednesday, marks E.l.f.’s largest to date and underscores the brand’s ambition to expand its footprint in prestige skincare and international markets.
Founded in 2022, Rhode quickly rose to prominence thanks to Bieber’s social media influence and a minimalist product lineup centered around her signature “glazed donut” skin aesthetic. With just 10 SKUs and a direct-to-consumer model, Rhode has achieved extraordinary traction, generating $212 million in net sales in the 12 months ended March 31. By the end of 2024, it had become the top skincare brand by earned media value, growing 367 percent year-over-year.
The $1 billion deal consists of $800 million in cash and stock payable at closing, with an additional $200 million potential earnout based on performance over the next three years. E.l.f. has secured $600 million in debt financing to help fund the transaction. The acquisition also brings Rhode’s forthcoming launch into Sephora North America under E.l.f.’s umbrella — marking the company’s first entry into the Sephora retail ecosystem.
Hailey Bieber will stay closely involved with the brand as its Chief Creative Officer and Head of Innovation, overseeing product development, marketing, and creative strategy. Rhode cofounders Michael D. Ratner and Lauren Ratner, along with CEO Nick Vlahos, will continue to lead day-to-day operations from the company’s Los Angeles headquarters.
According to E.l.f. Chairman and CEO Tarang Amin, discussions with Rhode began in October, driven by the brand’s extraordinary momentum. “In less than three years, going from zero to $212 million in net sales — I would never believe that if somebody told me,” Amin said. “Everything that Hailey has fits our ethos as a company.”
The acquisition also arrives at a time of mixed fortunes for E.l.f. Beauty. While the company beat expectations with $332.6 million in fourth-quarter sales and a 4 percent increase in net revenue, its stock price has declined approximately 25 percent year-to-date amid ongoing tariff pressures. With 75 percent of E.l.f.’s products manufactured in China, the company is navigating potential cost increases while implementing a $1 price hike across all products to offset the impact. Rhode, in contrast, is largely manufactured in Italy and South Korea.
