E.l.f. Beauty Purchases Rhode Skin by Hailey Bieber for $1 Billion

E.l.f. announced its acquisition of Hailey Bieber’s Rhode for $1 billion, merging two innovative beauty brands. Rhode, launched in 2022, is known for its high-tech, accessible skincare, achieving $212 million in sales with just 10 products. E.l.f., recognized for affordable yet high-quality products, aims to leverage Rhode’s Gen-Z appeal and market presence.

Hailey Bieber remains as Rhode’s chief brand officer, while Rhode’s team will join E.l.f. The deal includes $600 million in cash and $200 million in shares, with a future earnout. Rhode’s integration will bring E.l.f. into Sephora in the US, Canada, and UK, expanding its reach to younger consumers.

Despite facing challenges, including tariffs on products made in China, E.l.f. emphasizes its marketing strengths and supply chain agility. The acquisition is expected to enhance E.l.f.’s portfolio and drive continued growth in the beauty industry.