Cosmetic company e.l.f. Beauty will acquire model Hailey Bieber’s skincare brand, Rhode, in a $1 billion acquisition deal.
The agreement includes $800 million at closing, consisting of $600 million in cash and $200 million in newly issued shares of e.l.f. common stock.
An additional $200 million in potential earnout consideration is also included, contingent on the brand’s future growth over a three-year period.
e.l.f. Chairman and CEO Tarang Amin said in a statement that the acquisition of Rhode “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 is a beautiful brand that we believe is ready for rocketship growth,” he said.
Bieber, 28, who is also the wife of singer Justin Bieber, founded Rhode in 2022. The brand generated $212 million in net sales in the 12 months ending March 31.
The company was named after Bieber’s middle name and offers a simplified selection of 10 products across skincare, color cosmetics, and accessories.
Rhode more than doubled its consumer base over the past year and plans to launch its first physical in-store partnership with retailer Sephora throughout North America and the UK before the end of 2025.
Bieber will continue to play a pivotal role in the company, serving as Rhode’s chief creative officer and head of innovation, as well as strategic advisor for e.l.f.
“I found a like-minded disruptor with a vision to be a different kind of company that believes in big ideas and innovation in the same way that I do and will help us continue to grow the brand.”
