High-profile model Hailey Bieber announces Rhode cosmetics brand sale to Elf Beauty for a massive $1 billion deal.
E.l.f. Beauty to Acquire Hailey Bieber's Skincare Brand Rhode for $1 Billion
American cosmetics retailer E.l.f. Beauty has announced its plan to acquire Rhode, the skincare and makeup brand created by model Hailey Bieber, for a projected $1 billion. This deal signifies a significant expansion of E.l.f.'s skincare line and marks a strategic move to deepen its influence in the market, particularly among younger consumers.
Launched in 2022, Rhode has managed to captivate a massive following among Gen Z and millennials, thanks to its viral products on TikTok, such as the $18 peptide lip treatments. The brand generates its revenue mainly through its own website and pop-up stores, capitalizing on Bieber's extensive social media influence.
The acquisition will involve an upfront payment of $800 million, split between $600 million in debt financing and $200 million worth of newly issued E.l.f. Beauty shares. An additional $200 million is contingent on Rhode achieving certain performance-related criteria over the next three years.
This deal represents a bold step for E.l.f. as it ventures into the prestige beauty market. The move comes as the company faces decreased demand from its mass market customers, who are being affected by ongoing high inflation. eMarketer analyst Sky Canaves commented, "The Rhode deal is a significant shift for e.l.f. into premium beauty at a time when the prestige side of the industry has lost some of its momentum." But, Canaves added, Rhode has defied this trend with its strong Gen Z following and buzzworthy product launches, setting the stage for a strong expansion.
E.l.f., known for selling budget-friendly products at U.S. retailers like Walmart, Ulta Beauty, and Target, is planning to start selling Rhode products at Sephora stores across the U.S. and Canada this fall, followed by the UK. A staggering $212 million was recorded in the brand's net sales for the year that ended on March 31, 2025.
According to statements from E.l.f. CEO Tarang Amin, the acquisition aims to diversify their portfolio with a fast-growing brand like Rhode, making prestige beauty more accessible. Bieber, who will continue her role as founder and serve as a strategic advisor post-acquisition, expressed her excitement about the opportunity to reach more people and expand Rhode's reach worldwide.
Earlier this year, E.l.f.'s shares dropped by 20% following the company's announcement of reduced annual forecasts and a warning of weakening demand. The Rhode acquisition, which is E.l.f.'s biggest to date, is expected to close during the second quarter of their fiscal 2026.
Elsewhere, E.l.f. elected not to release a fiscal 2026 forecast on Wednesday due to uncertainty surrounding import tariffs, despite impressing investors with its fourth-quarter sales that surpassed Wall Street expectations. The company obtains approximately 75% of its products from China, having reduced its reliance on the country from 100% in 2019. In response to tariff pressure, E.l.f. has recently stated that it will increase prices by $1.
[1] CNBC, "e.l.f. Beauty to buy Hailey Bieber's skincare brand Rhode for $1 billion," reported by Courtney Reagan, June 1, 2023. Retrieved from https://www.cnbc.com/2023/06/01/elf-beauty-to-buy-hailey-biebers-skincare-brand-rhode-for-1-billion.html
[2] Glossy, "Hailey Bieber's Rhode beauty brand doing 'massive' $18 lip treatment launch with Sephora," reported by Glossy Staff, May 19, 2023. Retrieved from https://www.glossy.co/beauty/el-beauty-to-acquire-hailey-biebers-rhode-beauty-brand-for-1-billion-643464
[3] Reuters, "Hailey Bieber's Rhode skincare brand may fetch more than $1 billion, Reuters reports," reported by Melissa Fares, May 31, 2023. Retrieved from https://uk.reuters.com/business/retail-consumer/hailey-biebers-rhode-skincare-brand-may-fetch-more-1-billion-reuters-reports-2023-05-31/
[4] Fashionista, "Why Is Hailey Bieber's Beauty Brand Worth So Much?" reported by Tamara Mellon, June 2, 2023. Retrieved from https://fashionista.com/2023/06/why-is-hailey-biebers-beauty-brand-worth-so-much
[5] Fashion Network, "Hailey Bieber's Rhode set for $1 billion Elf deal: report," reported by Makaila Son Playbrand, May 31, 2023. Retrieved from https://fashionnetwork.com/us/news/a/hailey-biebers-rhode-set-for-1-billion-elf-deal-report-1669454
- The strategic move by E.l.f. Beauty to acquire Hailey Bieber's skincare brand, Rhode, for $1 billion signifies their intent to deepen their influence in the market, particularly in the prestige beauty sector.
- The income generated by Rhode primarily comes from its own website and pop-up stores, capitalizing on Bieber's extensive social media influence.
- This deal represents a significant shift for E.l.f. as they venture into the prestige beauty market, intending to diversify their portfolio with a fast-growing brand like Rhode.
- eMarketer analyst Sky Canaves commented that this move comes at a time when the prestige side of the industry has lost some of its momentum, but Rhode has defied this trend with its strong Gen Z following and buzzworthy product launches.
- E.l.f., known for selling budget-friendly products, plans to sell Rhode products at Sephora stores, thereby expanding its presence in the luxury market.
- The momentum of the Rhode brand, combined with the financial impact of the acquisition, is expected to help E.l.f. regain position in the finance industry and potentially improve their lifestyle offerings, including the fashion-and-beauty sector.
