Hailey Bieber founded Rhode in 2022, and will serve as chief creative officer once the deal closes.
In a landmark move within the beauty industry, e.l.f. Beauty has announced its acquisition of Rhode, the skincare and lifestyle brand founded by Hailey Bieber (28) in 2022, in a deal valued at $1 billion.
The acquisition significantly expands e.l.f. ‘s growing portfolio, which already includes e.l.f. Cosmetics, e.l.f. SKIN, Keys Soulcare, Naturium, and Well People. Rhode, which has seen rapid growth since its launch, reported $212 million in sales for the year ending March 31, 2025.
The brand is expected to debut at Sephora later this year, further amplifying its retail footprint.
Deal Structure
The deal includes a $600 million cash payment, $200 million in shares of e.l.f. stock to Rhode’s existing equity holders, and a $200 million earnout that would be payable over three years based on hitting performance goals.
Hailey Bieber, who is also married to singer Justin Bieber, will remain closely involved in Rhode’s creative and strategic direction, continuing in her roles as Founder, Chief Creative Officer, and Head of Innovation.
CEO Nick Vlahos will also retain his leadership position. Bieber co-founded Rhode alongside Michael D. Ratner and Lauren Ratner, both of whom will remain active in the company’s future.
“We can’t wait to bring Rhode to more faces, places, and spaces. From day one, my vision for Rhode has been to make essential skin care and hybrid makeup you can use every day,” said Bieber in a statement. “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. As I continue as Founder and step into an expanded role of chief creative officer and head of innovation, I look forward to leading the brand into this exciting new chapter of possibilities alongside my Co-Founders Michael D. Ratner and Lauren Ratner, who have helped bring my vision to life from the start.”
Rocketship Growth
e.l.f. Beauty Chairman and CEO Tarang Amin described Rhode as a “like-minded disruptor,” highlighting its alignment with e.l.f. ‘s mission to democratize prestige beauty.
“Rhode further diversifies our portfolio with a brand that’s redefining modern beauty,” said Amin. “Its rapid ascent and cultural relevance make it a strong complement to our vision. We believe Rhode is ready for rocketship growth.”
Celebrity-Backed Brand Boom
The acquisition is one of the largest celebrity brand deals since Ryan Reynolds’ Mint Mobile sold to T-Mobile for $1.3 billion in 2023.
With the rise of social media, skincare and beauty have become prime arenas for celebrities and influencers to build brands that merge personal image with consumer demand. Kim Kardashian’s Skims, for instance, recently reached a $4 billion valuation.
What’s Next?
According to SEC filings, if the deal does not close under specified conditions, e.l.f. will pay Rhode a $65 million termination fee. The transaction is expected to finalize in early fiscal 2026, subject to regulatory approvals and customary closing conditions.
As Rhode prepares for its next chapter under the e.l.f. Beauty umbrella, the brand is poised to accelerate its presence on global shelves—and continue its influence across the ever-evolving beauty landscape.
