Hailey Bieber’s Rhode acquired by E.l.f. beauty in $1 billion deal

Hailey Bieber’s skincare and cosmetics brand Rhode has been acquired by E.l.f. beauty for $1 billion, marking the largest acquisition in the budget beauty giant’s history.

The deal, announced on May 28, significantly surpasses E.l.f.'s previous record-setting purchase of skincare brand Naturium for $355 million in 2023, Caliber.Az reports via foreign media.

Founded by Bieber in 2022, Rhode has experienced rapid growth. The brand reported $212 million in net sales in its most recent fiscal year, which ended in March. Earlier this year, Rhode also announced plans to roll out in-store products at Sephora locations across North America and the United Kingdom.

Following the acquisition, Bieber will continue her leadership role at the company, taking on the title of chief creative officer and head of innovation. She is the brand’s founder and has served as its creative director since its inception.

With a devoted following on social media, Rhode has built a robust digital presence largely fueled by Bieber’s personal influence, both before and after her high-profile marriage to singer Justin Bieber.

“Rhode has a powerful engagement model,” E.l.f. stated during its earnings call following the announcement. The company noted the brand’s dedicated fan base, highlighting how customers regularly wait for hours at pop-up events and how products frequently sell out online.

“One of the things we really like about Rhode is just how tight the product assortment is. It’s only 10 products across skincare, color cosmetics and accessories,” said E.l.f. CEO Tarang Amin during the call.

E.l.f. is a dominant player in the beauty industry, especially among Gen Z consumers. It was recently named the top cosmetics brand among teens in a survey conducted by investment firm Piper Sandler. Executives at E.l.f. said the acquisition could help Rhode scale globally and expand its presence in retail markets.

By Sabina Mammadli