e.l.f. Beauty acquires Hailey Bieber’s Rhode in $1 Billion deal

In a major move reshaping the beauty industry, e.l.f. Beauty has announced the acquisition of Rhode, the skincare brand founded by model and entrepreneur Hailey Bieber, in a transaction valued at $1 billion.

The deal consists of $600 million in cash, $200 million in e.l.f. stock, and an additional $200 million earnout tied to Rhode’s performance over the next three years. The acquisition marks e.l.f.'s largest to date and signals its growing ambition to dominate the prestige skincare market while maintaining its reputation for affordability and innovation.

Founded in 2022, Rhode has quickly gained traction among Gen Z consumers with its minimalist branding and clean, vegan, cruelty-free formulations. In just three years, the brand has scaled impressively, generating $212 million in net sales in the 12 months ending March 31, 2025.

“Rhode has built something truly special by focusing on hero products, community engagement, and a values-driven approach,” said Tarang Amin, Chairman and CEO of e.l.f. Beauty. “This acquisition deepens our reach with Gen Z and strengthens our position in prestige skincare.”

Hailey Bieber will stay on as Chief Creative Officer and Head of Innovation at Rhode, while also serving as a Strategic Advisor to e.l.f. Beauty. Her continued involvement is expected to preserve the brand’s identity and creative direction under its new ownership.

The acquisition comes at a time of significant growth for e.l.f. Beauty, which has seen strong demand across its core makeup and skincare lines. The company plans to further expand Rhode’s footprint through increased global distribution, including upcoming launches in Sephora stores across North America and the U.K. by the end of the year.

The transaction is expected to close in the second quarter of fiscal 2026, pending customary regulatory approvals.