Hailey Bieber’s make-up and skin care brand, Rhode, has been acquired by e.l.f. Beauty in a landmark US$1bn deal.
Bieber, who co-founded the brand in 2022, will maintain her title as founder and also serve in the newly created roles of Chief Creative Officer and Head of Innovation at Rhode.
She has also been appointed as a Strategic Advisor to both Rhode and e.l.f. Beauty.
“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,” said Bieber.
“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.”
Rhode has grown to become one of the most influential beauty brands in the industry, and reported total net sales of $212m for the 12 months ended 31 March 2025.
The business was recently listed among the UK’s most searched for celebrity beauty brands, alongside Selena Gomez’s Rare Beauty and Kate Moss’ Cosmoss.
It was named as one of 2024’s top rising stars in beauty, according to a report by Cosmetify.
Rhode is also gearing up for its first physical launch with LVMH-owned retailer Sephora in North America and the UK.
e.l.f. Beauty’s deal consisted of $800m of consideration payable at closing in a combination of cash and stock.
It also accounted for an additional potential earn-out consideration of $200m, which is based on the future growth of the brand over a three-year timeframe.
Global investment bank Moelis & Company served as financial advisor to Rhode.
“e.l.f. Beauty found a like-minded disruptor in Rhode,” said e.l.f. Beauty 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.”
e.l.f. Beauty’s acquisition of Rhode follows the US cosmetics brand releasing an earnings update on its full-year 2025 results.
Net sales increased by 28% to $1.31bn, driven by a strong performance across its retail and e-commerce channels and an uptick in demand in the US and international markets.
Net income was $112.1m on a GAAP basis, while adjusted net income was reported at $197.6m.
e.l.f. Beauty’s final quarter of trading for the year also bolstered the brand's full-year results, with net sales jumping 4% to $332.6m in Q4.
“In this dynamic environment, we continue to deliver industry-leading results,” added Amin.
“We believe we have the right strategy to drive continued category-leading sales and market share growth in the years to come, and believe the acquisition of Rhode will further strengthen and diversify our portfolio of fast-growing disruptive brands.”
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