e.l.f. Beauty Acquires Hailey Bieber’s Rhode in $1 Billion Deal
In a strategic move to bolster its skincare portfolio, e.l.f. Beauty has announced the acquisition of Hailey Bieber’s skincare brand, Rhode, in a deal valued at up to $1 billion. This acquisition, comprising $600 million in cash, $200 million in e.l.f. common stock, and a potential $200 million earnout based on Rhode’s performance over the next three years, signifies a significant expansion into the prestige beauty sector for e.l.f..
Strategic Expansion into Skincare
Founded in 2022, Rhode has quickly established itself in the skincare industry, generating $212 million in net sales over the past year. The brand’s success is attributed to its minimalist approach and effective formulations, resonating with a broad consumer base. With this acquisition, e.l.f. aims to enhance its skincare offerings and expand its presence in the premium beauty market.
Hailey Bieber’s Continued Involvement
Following the acquisition, Hailey Bieber will continue her involvement with Rhode as Chief Creative Officer and Head of Innovation. She will oversee creative direction, product development, and marketing strategies, ensuring the brand’s identity and vision remain intact. Additionally, Bieber will serve as a strategic advisor to both e.l.f. and Rhode, contributing her expertise to the broader company’s initiatives.
Financial Implications and Market Response
The announcement of the acquisition has positively impacted e.l.f.’s stock performance, with shares rising 12% in premarket trading. This surge reflects investor confidence in the company’s strategic direction and the potential for growth in the skincare segment.
Looking Ahead
The deal is expected to close in the second quarter of 2026, subject to regulatory and shareholder approvals. As e.l.f. Beauty integrates Rhode into its portfolio, the company is poised to leverage its extensive retail partnerships and marketing capabilities to accelerate Rhode’s growth and reach a wider audience.
Conclusion
e.l.f. Beauty’s acquisition of Rhode marks a pivotal moment in the company’s evolution, positioning it as a formidable player in both the accessible and prestige beauty markets. With Hailey Bieber’s continued leadership and e.l.f.’s operational expertise, the combined entity is well-positioned for sustained success in the competitive beauty industry.
