E.l.f. is set to acquire Hailey Bieber’s makeup brand, Rhode, for $1 billion in a deal that is expected to close by the end of the year.
Rhode was launched in 2022 and has achieved massive success within the past three years, more than doubling its number of customers and earning $212 million in revenue for the fiscal year that ended on March 31.
This deal marks e.l.f. cosmetics’ expansion into skincare and a higher-end market.
The acquisition involves $800 million in cash and stock and a $200 million potential payout, which is performance-based.
Tarang Amin, e.l.f.’s CEO, commented: “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 is a beautiful brand that we believe is ready for rocketship growth.”
The beauty brand began as a direct-to-consumer wholesaler and recently expanded into physical retail with plans to offer its products in Sephora across the US and UK in 2024.
Moving forward, Bieber will take on the role of Rhode’s Chief Creative Officer and Head of Innovation.
Rhode’s sales and success were driven by a robust online marketing presence, which appealed to a wide audience through TikTok marketing campaigns.
Bieber added: “From day one, my vision for Rhode has been to make essential skin care and hybrid makeup you can use every day. Just three years into this journey, our partnership with e.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally.”
The announcement comes on the heels of price increases from e.l.f. cosmetics as it deals with the additional impact from tariffs.
Click here to sign up to Retail Gazette‘s free daily email newsletter
