In a landmark move poised to reshape the beauty industry, e.l.f. Beauty has announced its acquisition of Hailey Bieber’s skincare brand, Rhode, in a deal valued at up to $1 billion. This strategic partnership marks e.l.f.’s significant expansion into the prestige beauty sector, aligning with its mission to make high-quality beauty accessible to all.
A strategic expansion into prestige beauty
e.l.f. Beauty, renowned for its affordable and innovative cosmetics, is set to acquire Rhode for an initial $800 million in cash and stock, with an additional $200 million contingent on performance milestones over the next three years. This acquisition signifies e.l.f.’s commitment to diversifying its portfolio and entering the high-growth prestige skincare market.
Rhode, launched by Hailey Bieber in 2022, has rapidly gained popularity, achieving $212 million in net sales in the fiscal year ending March 31, 2025. The brand’s minimalist aesthetic and focus on high-performance, skin-focused products have resonated with Gen Z and millennial consumers, making it a valuable addition to e.l.f.’s brand lineup.
Hailey Bieber’s continued leadership
As part of the acquisition, Hailey Bieber will remain at the helm of Rhode, serving as Chief Creative Officer and Head of Innovation. In this role, she will oversee product development, creative direction, and marketing, ensuring the brand’s vision and identity remain intact. Additionally, Bieber will act as a strategic advisor to e.l.f. Beauty, contributing to the company’s broader innovation initiatives.
Bieber expressed enthusiasm about the partnership, stating, “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.”
Implications for the beauty industry
This acquisition underscores the growing influence of celebrity-founded beauty brands and their appeal to established companies seeking to tap into new demographics. Rhode’s success demonstrates the power of authentic branding and direct engagement with consumers, particularly in the digital age.
For e.l.f. Beauty, integrating Rhode into its portfolio not only expands its product offerings but also enhances its presence in the prestige market. The company anticipates that Rhode’s strong brand identity and loyal customer base will contribute significantly to its growth trajectory.
