Hailey Bieber Sells Rhode to e.l.f. Beauty in $1 Billion
Hailey Bieber’s skincare and beauty brand, Rhode, is being acquired by e.l.f. Beauty in a deal valued at approximately $1 billion, marking the company’s strategic entrance into the prestige beauty market. The acquisition will provide the affordable cosmetics giant with access to a celebrity-led brand that has gained strong traction among Gen Z and millennial consumers.
e.l.f. announced on Wednesday it would pay $800 million to Rhode’s shareholders in a mix of cash and stock, with an additional potential earnout of $200 million, contingent on performance targets.
Last month, Reuters reported that Bieber had been exploring a potential sale of the brand, with expectations that its valuation could exceed $1 billion.
For e.l.f., the acquisition represents a significant strategic shift, expanding beyond its mass-market roots at a time when inflation-driven consumer caution is impacting affordable beauty sales.
Launched in 2022, Rhode quickly built momentum through social media virality, thanks in large part to Bieber’s personal influence and cult-favorite products like the $18 Peptide Lip Treatment. The brand currently sells exclusively through its own website and pop-up stores, steering clear of traditional retail channels.
Meanwhile, e.l.f. —short for “eyes, lips, face”— is known for ultra-affordable beauty products, with items starting at just $2, widely available at Walmart, Target, and Ulta Beauty across the U.S.
“e.l.f. Beauty presents an incredible opportunity to scale our community, expand innovation, and take Rhode global,” Bieber said in a statement.
In the fiscal year ending March 31, Rhode generated $212 million in revenue. The brand is set to launch in Sephora stores across the U.S. and Canada this fall, with plans to expand into the U.K. market shortly thereafter.
Bieber will remain closely involved, continuing her role as founder and also serving as a strategic advisor post-acquisition. The deal is expected to close in the second quarter of fiscal year 2026.
