E.l.f Beauty announced on Wednesday it would acquire Hailey Bieber’s skincare brand Rhode in a deal worth up to $1 billion. This is E.l.f’s largest ever acquisition, and is comprised of $800 million in cash and stock, plus an additional potential $200 million payout based on Rhode’s performance over the next three years.
“I’ve been in the consumer space for 34 years, and I’ve been blown away by seeing this brand over time. In less than three years, they’ve gone from zero to $212 million in net sales, direct-to-consumer only, with only 10 products. I didn’t think that was possible,” CEO Tarang Amin told CNBC in an interview. “So that level of disruption definitely caught our attention.”
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“From day one, my vision for Rhode has been to make essential skin care and hybrid makeup you can use every day,” said Bieber via a media release. “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,” she added.
Rhode had $212 million in net sales in the 12 months that ended March 31. The company’s products are only available online but by the end of 2025, it plans to begin an in-store partnership with Sephora in North America and the UK. Bieber, who’s a model and the wife of popstar singer Justin Bieber will be Rhode’s chief creative officer and head of innovation and also a strategic advisor to the combined companies.
This deal is reportedly part of E.l.f’s efforts to expand further into skincare products — which are becoming increasingly popular — and reach higher income consumers. In 2023, the company acquired skincare brand Naturium for $355 million.