E.l.f. Buys Rhode in $1 Billion Deal

E.l.f. Beauty is acquiring Hailey Bieber's skincare brand Rhode in its largest-ever deal, valued at up to $1 billion, with $600 million in cash, $200 million in E.l.f. stock, and an additional $200 million possible through earnouts based on Rhode's growth. Rhode, founded by Bieber in 2022, generated $212 million in net sales in the past fiscal year and currently sells online, with plans to expand into Sephora stores in North America and the UK. Hailey Bieber will continue as Rhode's Chief Creative Officer and Head of Innovation, and serve as a strategic advisor for the combined companies. The acquisition highlights the rise of celebrity-driven beauty brands and their disruptive impact on the industry. Following the announcement, E.l.f. shares climbed, and the deal reportedly boosts Hailey Bieber’s net worth above that of her husband, Justin Bieber. The companies expect Rhode's global expansion to accelerate as a result of the deal.