Hailey Bieber's Rhode Brand Acquired by e.l.f. Beauty for $1 Billion, Making Her Richer Than Husband Justin Bieber

e.l.f. Beauty has acquired Hailey Bieber's prestige cosmetics brand, rhode, for $1 billion, making Bieber wealthier than her husband Justin Bieber. The deal is seen as a bold move into premium beauty at a time when consumers are more budget-conscious. e.l.f. shares soared 23% following the announcement, driven by the acquisition's potential to deepen the company's connection with Gen Z consumers and widen its distribution globally.

e.l.f. Beauty (NYSE: ELF) has expanded its portfolio with a significant acquisition, purchasing Hailey Bieber's prestige cosmetics brand, rhode, for $1 billion. The deal, announced on May 28, 2025, marks a strategic move into the premium beauty market at a time when consumer spending habits are shifting towards more budget-conscious options [1].

The acquisition includes a $800 million cash and stock consideration at closing, with an additional potential earnout of $200 million based on future growth over three years. e.l.f. Beauty's Chairman and CEO, Tarang Amin, stated, "e.l.f. Beauty found a like-minded disruptor in rhode. rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible" [1].

rhode, founded by Bieber in 2022, has quickly established itself as a disruptor in the beauty industry, with a focus on high-performance, skincare essentials. The brand has seen remarkable growth, more than doubling its consumer base over the past year and driving $212 million in net sales in the 12 months ended March 31, 2025 [1]. Bieber will continue as Founder and take on additional roles as Chief Creative Officer and Head of Innovation, overseeing creative, product innovation, and marketing for rhode [1].

The acquisition is expected to close in the second quarter of Fiscal 2026 and is subject to customary closing conditions, including regulatory approvals. e.l.f. Beauty's shares soared 23% following the announcement, reflecting investor optimism about the acquisition's potential to deepen the company's connection with Gen Z consumers and widen its distribution globally [1].

References:
[1] https://investor.elfbeauty.com/stock-and-financial/press-releases/landing-news/2025/05-28-2025-210536607