E.L.F. Beauty Acquires Hailey Bieber’s Rhode Brand in $1 Billion Deal

E.L.F. Beauty has acquired Rhode, the cosmetics brand launched by model and entrepreneur Hailey Bieber, in a deal valued at $800 million in cash and stock. This striking valuation underscores the rapid success of the brand, which launched less than three years ago with a focus on blushes and lip glosses.

Rhode has distinguished itself in a market saturated with celebrity-led beauty lines, achieving swift growth largely fueled by Hailey Bieber’s significant social media presence. With 55 million Instagram followers and 15 million on TikTok, Bieber’s influence has played a crucial role in the brand’s expansion.

In a statement, Hailey Bieber highlighted the brand’s rapid rise over the past three years, attributing it to intentional strategies and strong marketing efforts. She expressed that partnering with E.L.F. Beauty will support Rhode’s continued innovation and global expansion.

Beyond the initial $800 million payment, the agreement includes the possibility of an additional $200 million based on Rhode’s performance over the coming three years. Founded by Bieber along with Lauren and Michael D. Ratner, Rhode reported $212 million in net sales in the fiscal year ending March 31.

Tarang Amin, CEO of E.L.F. Beauty, revealed that negotiations began in October and expressed enthusiasm for merging Rhode’s appeal among Gen Alpha consumers with E.L.F.’s established millennial and Gen Z customer base.

The acquisition also marks Rhode’s expansion into physical retail through a partnership with Sephora, introducing its products to stores for the first time since launch. Despite previously operating without a consistent brick-and-mortar presence, Rhode had already cultivated a passionate customer base that impressed E.L.F. leadership.