Popular beauty brand e.l.f. Beauty has acquired a skincare company founded by celebrity and model Hailey Bieber, in a deal worth $1 billion.
The agreement includes $800 million paid upfront in cash and shares, and an extra $200 million that will be paid later if Rhode continues to grow well over the next three years.
Hailey Bieber started Rhode in 2022 to offer simple yet effective skincare and makeup. The brand is known for its clean, glazed skin look and has become very popular online.
In just three years, Rhode made $212 million in sales and doubled its number of customers. CEO of e.l.f Beauty, Tarang Amin said they found a like-minded brand in Rhode.
“Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible.
We are excited by Rhode's ability to break beauty barriers, fully aligning with e.l.f. Beauty’s vision to create a different kind of company,” he added.
Hailey Bieber will stay on as Founder and take on new roles as Chief Creative Officer and Head of Innovation, helping to lead product development, branding and marketing. She will also act as an advisor to both companies.
"I always had big dreams for the company, and the most important thing to me is to keep bringing Rhode to more spaces, places, and faces globally,"
Hailey wrote in a May 28 Instagram post. "So, today I am so incredibly excited and proud to announce that we are partnering with e.l.f. Beauty as we step into this next chapter in the world of rhode."
This deal helps e.l.f. Beauty enters the prestige beauty market, where higher-end products are sold. It’s also part of the company’s plan to expand in skincare, after buying another brand, Naturium, in 2023.
The deal is expected to be completed in the second quarter of e.l.f. Beauty’s 2026 financial year, once all required approvals are given.
Rhode was launched in 2022 by Hailey Bieber, who wanted to create skincare products that are simple, effective, and made with good ingredients.
In just three years, Rhode has become extremely popular, especially among Gen Z and millennials. It more than doubled its customer base in the past year alone and generated $212 million in net sales over the 12 months ending March 31, 2025.
Currently, Rhode products are sold online through its website, but the brand is planning to enter physical stores for the first time later this year through a partnership with Sephora, one of the world’s leading beauty retailers. The first rollout will happen in North America and the UK.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
