E.l.f. Beauty Acquires Hailey Bieber's Rhode for $1 Billion

E.l.f. Beauty has announced a significant acquisition, purchasing Hailey Bieber's skincare brand Rhode for a total of $1 billion. This strategic move is aimed at expanding e.l.f. Beauty's reach into the higher-income consumer market. The deal, which was officially revealed on Wednesday, includes $800 million in cash and stock to be paid at closing, with an additional $200 million earnout contingent on the brand's future growth.

Hailey Bieber, who founded Rhode, will continue to play a pivotal role in the brand. She will serve as the chief creative officer and head of innovation, overseeing creative, product innovation, and marketing efforts. Additionally, she will act as a strategic advisor to the combined companies. Bieber expressed her excitement about the partnership, stating that it marks an incredible opportunity to elevate and accelerate the brand's ability to reach a broader audience with innovative products and global distribution.

The acquisition of Rhode aligns with e.l.f. Beauty's vision to create a different kind of company by breaking beauty barriers and making prestige products more accessible. Tarang Amin, chairman and CEO of e.l.f. Beauty, highlighted that Rhode's fast-growing brand and ability to disrupt the beauty industry make it a valuable addition to their portfolio. He emphasized that Rhode is ready for significant growth, further diversifying e.l.f. Beauty's offerings.

Rhode, launched in June 2022, has quickly gained popularity, particularly for its Peptide Glazing Fluid, Barrier Restore Cream, and Peptide Lip Treatment. Bieber's focus on creating an all-inclusive beauty company has resonated with consumers, and the brand has continued to expand its product line to include makeup items like blush and lip liner. The acquisition by e.l.f. Beauty is expected to accelerate Rhode's growth and distribution, making its high-quality skincare and makeup products available to a wider audience.

This acquisition is a strategic move for e.l.f. Beauty, as it allows the company to tap into the growing demand for high-quality, inclusive skincare and makeup products. By acquiring Rhode, e.l.f. Beauty can leverage Bieber's influence and the brand's popularity to expand its reach and appeal to a broader consumer base. The deal also provides e.l.f. Beauty with an opportunity to diversify its product offerings and enter new markets, further solidifying its position as a leader in the beauty industry.

For Hailey Bieber, the acquisition represents a significant milestone in her entrepreneurial journey. As the founder of Rhode, she has successfully built a brand that resonates with consumers and has gained a loyal following. The partnership with e.l.f. Beauty will allow her to continue to innovate and expand the brand, while also providing her with the resources and support needed to achieve her vision for Rhode. Bieber's continued involvement in the brand as chief creative officer and head of innovation ensures that her creative vision and values will remain at the core of Rhode's growth and development.

Overall, the acquisition of Rhode by e.l.f. Beauty is a win-win for both parties. It allows e.l.f. Beauty to expand its reach and diversify its product offerings, while also providing Rhode with the resources and support needed to accelerate its growth and reach a broader audience. The partnership between e.l.f. Beauty and Hailey Bieber is expected to drive innovation and disruption in the beauty industry, making high-quality, inclusive skincare and makeup products more accessible to consumers around the world.