Elf Cosmetics acquires Rhode, a cosmetics brand owned by Hailey Bieber, in a staggering $1 billion deal.
E.l.f. Beauty Acquires Hailey Bieber's Skincare Brand Rhode in a $1 Billion Deal
E.l.f. Beauty, a leading budget cosmetics brand, has announced a strategic partnership with Rhode, Hailey Bieber's skincare and makeup brand. The deal, worth $1 billion, includes $800 million to be paid at closing in a combination of cash and stock, with an additional potential earnout of $200 million based on the future growth of Rhode over three years.
"e.l.f. Beauty found a like-minded disruptor in Rhode," said Tarang Amin, Chair and CEO of e.l.f. Beauty. "Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible. We are excited by Rhode's ability to break beauty barriers, fully aligning with e.l.f. Beauty's vision to create a different kind of company."
Rhode's products, centered around Bieber's skincare philosophy of "one of everything really good," more than doubled its consumer base over the past year, generating $212 million in net sales in the 12 months ending March 31, 2025.
Bieber will continue her role as founder and serve as Rhode's Chief Creative Officer and Head of Innovation, overseeing creative, product innovation, and marketing. She will also act as a strategic advisor to the combined companies.
E.l.f. Beauty plans to launch a physical in-store partnership with retailer Sephora throughout North America and the U.K. this year, while Rhode's founders, Michael D. Ratner and Lauren Ratner, and CEO Nick Vlahos, will continue to lead the brand out of its Los Angeles office.
ELF
Rhode was the No. 1 skincare brand in earned media value (EMV) in 2024, representing 367% year-over-year EMV growth. Bieber expressed her excitement about bringing Rhode to more consumers and furthering its global expansion.
E.L.F. BEAUTY INC.
e.l.f. Beauty, founded in 2004, is the No. 1 brand in units across U.S. cosmetics and No. 2 in dollar share. The company launched e.l.f. SKIN five years ago to accelerate its potential in skincare and acquired Naturium in 2023, doubling the company’s skincare presence.
90.45
Under the terms of the definitive agreement, e.l.f. Beauty will acquire Rhode for $800 million at closing, comprised of $600 million of cash and $200 million, or about 2.6 million shares, of newly issued shares of e.l.f. Beauty common stock issued to existing equity holders of Rhode, subject to certain customary purchase price adjustments. The transaction, expected to close in the second quarter of fiscal 2026, includes an additional potential earnout consideration of $200 million based on the future growth of the brand over a three-year post-closing period. The purchase price at closing represents about 3.8x LTM net sales of $212 million on March 31.
-1.33
Cash considerations consist of fully committed debt financing of $600 million. Shares issued in the transaction to the founders and certain key employees are subject to lockup agreements and will be released from the lockup over a one-year period.
-1.45%
Data source: Brooklyn Storme, Forbes
The strategic partnership is expected to significantly expand Rhode's distribution channels, accelerate its growth trajectory, and strengthen its position in the global beauty market by combining Rhode's innovative brand with e.l.f. Beauty's operational and retail expertise.
Powered By
- This strategic partnership between e.l.f. Beauty and Rhode, the skincare brand owned by Hailey Bieber, is valued at $1 billion, with a substantial portion going towards financing and stock in e.l.f. Beauty.
- The acquisition diversifies e.l.f. Beauty's portfolio by adding a fast-growing, prestige-level brand like Rhode, aligning with their vision of making high-quality products accessible to all.
- In the fashion-and-beauty industry, Rhode was the No. 1 skincare brand in earned media value in 2024, and its products have more than doubled its consumer base over the past year.
- The partnership is projected to strengthen Rhode's position in the global beauty market by leveraging e.l.f. Beauty's operational and retail expertise, as well as expanding distribution channels and accelerating its growth trajectory.
