In a blockbuster move that is sending shockwaves through the beauty industry, e.l.f. Beauty has officially acquired Hailey Bieber’s fast-growing skincare and lifestyle brand Rhode for up to $1 billion. The deal, announced on May 28, 2025, marks the largest acquisition in e.l.f. Beauty’s history and underscores the company’s aggressive push into prestige skincare while capitalizing on celebrity-driven brand power.
The transaction values Rhode at $800 million in upfront consideration, paid in a mix of cash and newly issued e.l.f. Beauty stock, with an additional $200 million earnout tied to Rhode’s performance over the next three years. This structure reflects confidence in Rhode’s continued momentum since its 2022 launch. Founded by model and entrepreneur Hailey Bieber, Rhode quickly became a Gen Z favorite with its minimalist, high-performance skincare and lip products. Items like the Peptide Lip Tint and Barrier Restore Cream frequently sell out within hours of release, driving $212 million in net sales for the 12-month period ending March 31, 2025.
e.l.f. Beauty, long known for its affordable, trend-forward makeup and clean formulas, sees Rhode as the perfect complement. The acquisition allows the NYSE-listed company to reach higher-income consumers and expand its footprint in premium skincare categories. e.l.f. Chairman and CEO Tarang Amin described Rhode as a “likeminded disruptor” and called Hailey Bieber “one of the most thoughtful founders I’ve ever met.” Both brands share a passion for innovation, community building, and challenging industry norms, creating what Amin calls a “powerhouse alliance” poised for global growth.
Hailey Bieber will remain deeply involved post-acquisition. She will continue as Rhode’s founder while stepping into the newly created roles of chief creative officer and head of innovation. In addition, she will serve as a strategic advisor to the combined organization. This hands-on involvement ensures Rhode’s signature aesthetic and product philosophy stay intact while gaining access to e.l.f.’s robust supply chain, international distribution, and digital marketing expertise.
The deal builds on e.l.f. Beauty’s successful track record of strategic acquisitions, including its $355 million purchase of Naturium in 2023. Industry analysts view the Rhode transaction as a smart bet on the blurring lines between mass-market and prestige beauty. Rhode’s cult following, fueled by Bieber’s massive social media presence and authentic storytelling, gives e.l.f. instant credibility in the upscale segment. Early indications show the integration is already paying dividends, with Rhode contributing significantly to e.l.f.’s recent quarterly sales growth and opening doors to new retail partners like Sephora.
For consumers, the partnership promises exciting developments. Expect broader availability of Rhode’s hero products alongside potential cross-brand collaborations that blend e.l.f.’s playful affordability with Rhode’s sleek, skin-first ethos. The move also highlights a broader trend: established beauty giants are turning to celebrity-founded brands to stay relevant in a market dominated by social media influence and rapid product innovation.
As the beauty industry continues its evolution, this $1 billion union positions e.l.f. Beauty for accelerated expansion while giving Hailey Bieber’s vision a powerful platform for worldwide reach. The acquisition is expected to close in the second quarter of fiscal 2026, subject to customary regulatory approvals. For now, beauty enthusiasts are watching closely to see how the two brands combine their strengths to redefine what modern skincare looks like.
