A Landmark Deal in the Beauty Industry
In a move that has sent ripples through the beauty industry, E.l.f. Beauty Inc. has announced its acquisition of Hailey Bieber’s skincare brand, Rhode, in a deal valued at up to $1 billion. The transaction, which includes $600 million in cash, $200 million in E.l.f. stock, and an additional $200 million contingent on Rhode’s future performance, marks one of the most significant acquisitions in the prestige beauty market this year.
The Breakdown of the Deal
The acquisition is structured to ensure Rhode’s continued growth under its new ownership while retaining its unique brand identity. Hailey Bieber will remain as Rhode’s Chief Creative Officer and Head of Innovation, overseeing creative direction, product development, and marketing strategies. This ensures that the brand’s minimalist ethos and celebrity-driven appeal remain intact.
- Cash Component: $600 million
- Stock Component: $200 million in E.l.f. shares
- Performance-Based Bonus: Up to $200 million
Rhode’s Meteoric Rise
Launched in June 2022, Rhode quickly became a favorite among Gen Z consumers, thanks to its straightforward approach to skincare and Hailey Bieber’s massive social media influence. The brand’s direct-to-consumer model and viral products, like its $18 peptide lip treatments, propelled it to impressive sales figures. By March 2025, Rhode reported net sales of $212 million—a testament to its rapid success.
Why E.l.f. Beauty Made the Move
E.l.f. Beauty, known for its affordable and high-quality cosmetics, sees this acquisition as a strategic entry into the prestige beauty market. The deal, expected to close in fiscal Q2 2026, will allow E.l.f. to diversify its product lineup and attract a broader audience. Here’s how the two brands compare:
| Brand | Market Position | Price Range | Key Audience |
|---|---|---|---|
| E.l.f. Beauty | Affordable, mass-market | $3 – $20 | Budget-conscious consumers |
| Rhode | Prestige, minimalist | $18 – $45 | Gen Z, skincare enthusiasts |
The Bigger Picture: Celebrity Beauty Brands
Rhode’s acquisition is part of a growing trend where celebrity-led beauty brands dominate the market. Brands like Rare Beauty (Selena Gomez) and Fenty Beauty (Rihanna) have paved the way, proving that star power can translate into substantial business success. Rhode’s sale to E.l.f. underscores the potential of such ventures in an increasingly competitive industry.
Public Reaction: Excitement and Skepticism
The news has sparked lively discussions across social media platforms. While many fans are excited about Rhode’s potential expansion under E.l.f.’s distribution network, others worry about the brand losing its indie charm. These conversations highlight the deep connection consumers feel with Rhode and its association with Hailey Bieber.
What’s Next for Rhode?
As the deal progresses, industry watchers will be keen to see how Rhode evolves under E.l.f.’s ownership. Will it retain its minimalist identity, or will it expand into new product categories? One thing is certain: this acquisition is a game-changer for both brands and the beauty industry at large.
Conclusion
The $1 billion acquisition of Rhode by E.l.f. Beauty is more than just a business transaction—it’s a reflection of the shifting dynamics in the beauty world. By combining Rhode’s innovative products and star appeal with E.l.f.’s extensive reach, this partnership could redefine the future of skincare and cosmetics.
