Meet Hailey Bieber’s billion dollar baby, rhode.
On Wednesday, e.l.f. Beauty announced it had signed a definitive agreement to acquire Bieber’s multi-category lifestyle beauty brand for $1 billion.
“e.l.f. Beauty found a like-minded disruptor in rhode,” said e.l.f. Chairman and CEO Tarang Amin. “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 deal is made of “$800 million of consideration payable at closing in a combination of cash and stock, subject to customary adjustments, and an additional potential earnout consideration of $200 million based on the future growth of the brand over a three-year timeframe,” a news release explained.
Bieber, who is married to Justin Bieber, will remain rhode’s Founder and also serve as the brand’s Chief Creative Officer and Head of Innovation. Within this new role, she’ll oversee creative, product innovation and marketing. Within the combined companies, the model will serve as a Strategic Advisor.
“We can’t wait to bring rhode to more faces, places, and spaces. From day one, my vision for rhode has been to make essential skin care and hybrid makeup you can use every day,” said Bieber. “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. As I continue as Founder and step into an expanded role of Chief Creative Officer and Head of Innovation, I look forward to leading the brand into this exciting new chapter of possibilities alongside my Co-Founders Michael D. Ratner and Lauren Ratner, who have helped bring my vision to life from the start.”
Founded in 2022, Bieber’s influence along with rhode’s marketing team and strategy helped catapult it to be the number one 1 skin care brand in Earned Media Value in 2024, representing 367% year-over-year EMV growth. rhode is touted as containing “consciously-sourced ingredients to packaging made with post-consumer recycled materials.” It goes by the motto: “mindful skincare.”
Meanwhile, e.l.f. Beauty is an American cosmetics brand founded in Oakland in 2004. Five years ago it got into the skincare space with e.l.f. SKIN. In 2023, it acquired Naturium, which helped doubled the company’s skin care presence.
This new agreement with rhode will further diversify e.l.f. Beauty’s business, expanding it into the prestige beauty lanes. From there, this will lead to new retail partners like Sephora, which is the world’s leading prestige retailer.
“nder the terms of the definitive agreement, e.l.f. Beauty has agreed to acquire rhode for $800 million at closing,” the deal states.
The deal is comprised of $600 million of cash and $200 million, or approximately 2.6 million shares, of newly issued shares of e.l.f. Beauty common stock to existing equity holders of rhode. It also includes $200 million of potential earnout consideration based on the future growth of the brand over a three-year post-closing period.
The definitive agreement has been approved by the e.l.f. Beauty Board of Directors. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second quarter of Fiscal 2026.
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