e.l.f. to buy Hailey Bieber’s rhode skincare for $1 billion
In a bold move to expand its footprint in the prestige beauty market, e.l.f. Beauty (NYSE: ELF) announced Wednesday it has signed a definitive agreement to acquire rhode, the skincare brand founded by Hailey Rhode Bieber. The deal was revealed alongside e.l.f.’s Q4 earnings for the fiscal quarter ending March 2025.
The acquisition—valued at up to $1 billion—includes $800 million in cash and stock at closing, with an additional $200 million in potential earnout based on rhode’s growth over the next three years.
A Strategic Disruption
“e.l.f. Beauty found a like-minded disruptor in rhode,” said e.l.f. chairman and CEO Tarang Amin, praising the brand’s rapid growth and innovation. The acquisition aligns with e.l.f.'s mission to "build brands that disrupt norms, shape culture, and connect communities."
In a statement, Bieber expressed her enthusiasm for the partnership and confirmed her new, expanded role as rhode’s Chief Creative Officer and Head of Innovation. “I look forward to leading the brand into this exciting new chapter of possibilities,” she said, highlighting the continued collaboration with her co-founders Michael D. Ratner and Lauren Ratner.
Fast-Growing Brand with Global Ambitions
Launched in 2022, rhode has quickly gained a loyal following for its minimalist skincare products and has doubled its customer base over the past year, generating $212 million in net sales in the 12 months ending March 31, 2025.
As part of its next phase, rhode is preparing for its first major in-store retail expansion through a partnership with Sephora, launching across North America and the U.K. by year-end.
A Mixed Earnings Backdrop for e.l.f.
The announcement comes at a time of mixed financial results for e.l.f. Beauty. The company recently cut its full-year guidance following a 36% drop in profits and slower-than-expected sales in early 2025. In Q3, e.l.f. still beat revenue expectations with $355 million reported versus $330 million projected, although adjusted earnings per share slightly missed at 74 cents, down from the expected 75 cents.
Despite the dip, e.l.f. maintains a market cap of $5.1 billion and continues to be one of the most resilient names in affordable and accessible beauty. Founded in 2004 in Oakland, California, e.l.f. has carved out a reputation for quality at mass-market prices.
With the acquisition of rhode, e.l.f. is signaling its commitment to the higher-end segment of the market while maintaining its disruptive DNA. The deal sets the stage for a potential global powerhouse in beauty, uniting Bieber’s star-powered brand with e.l.f.'s robust distribution and operational strength.
