E.l.f. Beauty acquires Hailey Bieber's Rhode in billion dollar deal

E.l.f. Beauty, the publicly listed U.S. cosmetics company, has signed a 1 billion dollar agreement to acquire Rhode, the direct-to-consumer skincare brand founded by model and influencer Hailey Bieber. The deal marks a major push by e.l.f. into the prestige skincare space and reflects the brand’s ambitions to expand into new retail channels, including Sephora, and to deepen its presence in international markets.

The acquisition—comprising 800 million dollars in cash and stock at closing, with a further 200 million dollars tied to future performance—cements Bieber’s transition from celebrity endorser to bona fide beauty entrepreneur. Since its launch, Rhode has operated without wholesale stockists, relying instead on its founder’s powerful digital presence and loyal online following to build a global DTC business.

“E.l.f. Beauty found a like-minded disruptor in Rhode,” said Tarang Amin, e.l.f. Beauty Chairman and CEO. “Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible.”

For Bieber, who will remain Founder and step into the role of Chief Creative Officer and Head of Innovation, the deal is about scale. In her own words: “Just three years into this journey, our partnership with e.l.f. marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally.”

While Rhode may be young, its metrics are compelling. The brand reported 212 million dollars in net sales over the 12 months ending March 31, 2025, more than doubling its customer base year-on-year. Bieber’s carefully curated image—part minimalist, part Gen Z tastemaker—has helped Rhode become the top skincare brand in Earned Media Value (EMV) for 2024, growing 367 percent year-over-year.

Strategic evolution

The acquisition is also a strategic evolution for e.l.f., which has moved swiftly to broaden its skin care credentials. The 2023 purchase of Naturium gave e.l.f. a foothold in mid-tier skincare; Rhode now offers a bridge into the more elevated, lifestyle-driven end of the market, appealing to younger consumers seeking prestige positioning with a digital-native ethos.

Founded in 2004, e.l.f. has long championed accessibility in beauty—both in price and availability. But the Rhode acquisition signals a shift toward brand-building around aspirational storytelling and founder influence, with Bieber’s personal connection to the brand positioned as a central asset in both marketing and product development.

In addition to Bieber’s elevated role, Rhode’s co-founders Michael D. Ratner and Lauren Ratner, along with CEO Nick Vlahos, will continue to operate the business from its Los Angeles base. e.l.f. confirmed that Rhode’s entrepreneurial culture and team would be retained.

With the move, e.l.f. bets that Rhode’s digitally native, influencer-powered appeal can transcend the DTC space and scale globally, especially with the infrastructure, capital, and retail relationships of a publicly traded beauty conglomerate behind it.

Celebrity-founded brands may start with hype, but only real business acumen—and operational muscle—can turn them into global powerhouses.