Model Hailey Bieber has sold her makeup and skincare brand, Rhode, to E.l.f. Beauty in a deal valued at approximately $1 billion, marking the budget cosmetics retailer’s largest acquisition to date and its boldest move yet into the premium beauty market.
Announcing the deal on Wednesday, E.l.f. said it would pay $800 million to Rhode shareholders in a mix of cash and stock, with an additional $200 million in potential earnout payments tied to performance-based milestones.
Rhode, which launched in 2022, has quickly become a cult favourite among Gen Z and millennial consumers, thanks to its viral product launches and Bieber’s influential social media presence. Its $18 peptide lip treatments and minimalist branding have helped the brand build a loyal following, despite operating solely through direct-to-consumer channels and pop-up stores.
Hailey Bieber, who will remain founder and take on a new role as strategic advisor, said the deal with E.l.f. presented “an incredible opportunity to elevate and accelerate” Rhode’s global reach and product innovation. The company recorded approximately $212 million in revenue for the fiscal year ending March 31 and is planning to expand into Sephora stores in the US, Canada, and eventually the UK starting this autumn.
E.l.f., whose name stands for “eyes, lips, face,” typically sells low-cost beauty products through mass retailers like Walmart, Target, and Ulta. The acquisition of Rhode signals a strategic shift into the prestige market, as the company faces slowing demand from price-sensitive shoppers affected by ongoing inflation.
“This is a bold move for E.l.f. into premium beauty at a time when the prestige side of the industry has lost momentum,” said Sky Canaves, an analyst at eMarketer. “But Rhode has defied this trend with its strong Gen Z appeal and successful product drops.”
E.l.f. CEO Tarang Amin praised Rhode’s rapid growth, calling the brand “a fast-growing addition that makes the best of prestige accessible,” and said the acquisition would further diversify the company’s offerings.
The acquisition, which follows E.l.f.’s $355 million purchase of skincare brand Natrium in 2023, is expected to close in the second quarter of fiscal 2026. The announcement comes just months after E.l.f. issued a warning over weakening demand and slashed its annual outlook, which led to a 20% drop in its share price earlier this year.
Faridah Abdulkadiri
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