NEW YORK — In a major move shaking up the beauty industry, e.l.f. Beauty acquires Hailey Bieber’s rhode skincare brand for $1 billion, the companies announced.
Rhode, founded by model and influencer Hailey Bieber, reported $212 million in net sales over the 12 months ending March 31. Currently available exclusively online, the brand is set to expand into physical retail with an upcoming partnership with Sephora in North America and the U.K. by the end of the year.
Hailey Bieber to Lead Creative Direction
As part of the acquisition, Hailey Bieber will take on the roles of chief creative officer and head of innovation at rhode, while also serving as a strategic advisor for the combined companies. Bieber, who is also known for her high-profile marriage to singer Justin Bieber, has been instrumental in building rhode’s reputation as a sought-after skincare brand.
Deal Structure and Financial Details
Under the terms of the agreement, e.l.f. Beauty acquires Hailey Bieber’s rhode for $600 million in cash and $200 million in newly issued shares of e.l.f. Beauty common stock. Additionally, there’s an earnout clause of $200 million based on rhode’s performance over the next three years.
This acquisition underscores e.l.f. Beauty’s commitment to expanding its brand portfolio and capturing a larger share of the global skincare market, leveraging celebrity-driven brand power and innovative product lines.
