In a significant move within the beauty industry, e.l.f. Beauty has shared that it will buy Hailey Bieber’s skincare brand, Rhode, in a deal worth $1 billion. The agreement includes $800 million in cash and shares, plus an extra $200 million depending on how well Rhode performs over the next three years.
Strategic Expansion into Premium Skincare
Founded in 2022 by model and entrepreneur Hailey Bieber, Rhode has rapidly gained popularity, especially among Gen Z consumers, for its minimalist skincare products and strong social media presence. The brand reported $212 million in net sales for the year ending March 31, 2025 .
e.l.f. Beauty, known for its affordable cosmetics, sees this acquisition as an opportunity to diversify its portfolio and strengthen its position in the premium skincare segment. "Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible," said e.l.f. Beauty CEO Tarang Amin .
Hailey Bieber's Continued Involvement
Even though Rhode has been bought, Hailey Bieber will still play a big role in the company. She will continue as the Chief Creative Officer and lead product development. Hailey will also advise e.l.f. Beauty to help keep Rhode’s original style and goals the same.
"From day one, my vision for Rhode has been to make essential skincare and hybrid makeup you can use every day," Bieber stated. "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" .
Expansion Plans and Market Impact
Rhode's products, previously available exclusively online, are set to debut in physical retail stores through a partnership with Sephora across North America and the U.K. later this year . This move aims to increase the brand's accessibility and reach a broader customer base.
The acquisition is expected to close in the second quarter of fiscal 2026, pending customary closing conditions. Industry experts view this deal as a strategic move by e.l.f. Beauty to tap into the growing demand for premium skincare products and leverage celebrity influence in the beauty market.
Image Source: TMZ
