Luxury skincare line rhode, owned by Hailey Bieber, acquired by e.l.f. Beauty for a staggering $1 billion deal.
American beauty brand e.l.f. Beauty acquires Hailey Bieber's skincare line rhode for $1 billion on Wednesday, marking its largest acquisition to date and eclipsing its $355 million purchase of Naturium in 2023.
Launched in 2022, rhode generated $212 million in net sales in its last fiscal year, which ended in March, and will see its products stocked in Sephora stores across North America and the United Kingdom, rhode announced earlier this year.
As chief creative officer and head of innovation, Bieber will continue to oversee the brand she founded and currently leads. her social media presence and digital footprint are said to contribute to rhode's powerful engagement, with fans often lining up for pop-up events and products frequently sold out on the company's website.
E.l.f. Beauty, founded in 2004, dominates the skincare and makeup market for young consumers and is the top cosmetic brand among teens, according to a survey by investment firm Piper Sandler. The company believes rhode's acquisition can help it expand its retail presence and enhance its global footprint.
The news comes as e.l.f. Beauty faces challenges due to President Donald Trump's tariff war with China. As of mid-May, about 75% of its global production came from China and is now subject to tariffs of 55%, the company said. In response, e.l.f. will increase prices by $1 across its entire portfolio on August 1.
The acquisition of rhode, which comprises $800 million in cash and stock,will potentially add another $200 million depending on rhode's performance over the next three years. The deal is expected to close later this year.
Enrichment Data: e.l.f. Beauty, Inc., a popular cosmetics brand selling makeup, skincare, and professional tools, has a focus on eyes, lips, and face and sells in 18 countries through major retailers like Target, Walmart, and Dollar General, with a strong digital presence. The acquisition of rhode positions e.l.f. to extend its portfolio with a premium celebrity-backed skincare line, a strategic move for growth and diversification in the competitive beauty market.
- The acquisition of Hailey Bieber's skincare line rhode by e.l.f. Beauty, worth $1 billion, indicates a strategic move for growth and diversification in the competitive fashion-and-beauty industry.
- The financing for this acquisition encompasses $800 million in cash and stock, with an additional potential $200 million depending on rhode's performance over the next three years.
- The banking-and-insurance sector may experience increased transactions due to the impact of the rhode acquisition on e.l.f. Beauty's business, particularly in terms of extended credit requirements for this substantial deal.
