Hailey Bieber Sells Skincare Brand Rhode to e.l.f. Beauty for $1 Billion
Model Hailey Bieber secures a whopping billion-dollar sale for her beauty brand.
In a monumental deal, Hailey Bieber's skincare brand Rhode has been acquired by e.l.f. Beauty for an astonishing $1 billion. This acquisition signifies a significant step forward for e.l.f. Beauty, as they delve deeper into the prestige skincare market with a brand known for its minimalist aesthetic and robust social media presence.
The transaction, announced on Wednesday, involves $800 million in cash and stock paid at closing, with a potential $200 million earnout over the next three years, contingent on Rhode's future growth.
Following the acquisition, Hailey Bieber will remain with the company, assuming the role of Chief Creative Officer and Head of Innovation. She will spearhead creative, innovation, and marketing strategies, as well as serve as a strategic advisor to the combined companies. The deal is expected to close in the early fiscal year 2026.
e.l.f. Beauty, with its portfolio consisting of e.l.f. Cosmetics, e.l.f. SKIN, Keys Soulcare, and other successful lines, sees this acquisition as a strategic move. They plan to launch Rhode in physical stores through a partnership with Sephora in North America and the U.K. later this year, expanding Rhode's distribution channels beyond its current online presence.
Rhode's success story began with Bieber's vision of creating essential skincare and hybrid makeup for everyday use. Together with co-founders Michael D. Ratner and Lauren Ratner, she built a brand that emphasizes natural beauty and boasts a strong online following, particularly among Gen Z and Gen Alpha consumers.
The acquisition underscores the growing trend of prestige skincare brands being snapped up by larger companies looking to diversify their portfolios and tap into younger demographics. The deal also underscores the power of influencer marketing in the beauty industry, with Rhode's success largely attributed to Bieber's massive social media following.
Competition in the skincare market may see a rise with this acquisition, as e.l.f. Beauty expands its reach and product offerings through Rhode's prestige brand image. However, with Bieber at the helm, the future of Rhode looks promising, as they aim to continue their focus on curated, essential skincare products, with plans to innovate and expand their offerings globally.
- The Commission has also been consulted on the draft budget in light of the $1 billion acquisition of Hailey Bieber's skincare brand Rhode by e.l.f. Beauty, a move that is expected to impact the finance sector, particularly in the small-business and business arenas.
- Entrepreneurship continues to flourish in the fashion-and-beauty industry, as exemplified by Hailey Bieber, who, with her co-founders, built Rhode, a brand catering to lifestyle preferences, into a thriving skincare company with a robust social media presence.
- The acquisition of Rhode by e.l.f. Beauty marks a significant milestone, not only for the beauty industry, but also for careers in entertainment, pop-culture, and celebrity-owned businesses, by signifying the potential financial rewards that can come from successful brand ventures.
- With Rhode's acquisition, e.l.f. Beauty's portfolio will include the prestige skincare brand known for its minimalist aesthetic, marking a strategic move to tap into younger demographics, appeal to Gen Z and Gen Alpha consumers, and potentially diversify into the lifestyle sector.
- The success of Rhode, driven by its emphasis on natural beauty and strong online following, underscores the influence of lifestyle choices and social media in shaping consumer preferences in the fashion-and-beauty industry, thus impacting various aspects of business operations, careers, and small-business growth.
