Hailey Bieber is selling her makeup and skincare brand Rhode for $1 billion to Elf Beauty Inc.
The model’s popular brand, loved by billions across the world, will give the budget cosmetic retailer Elf Beauty access to a celebrity-endorsed product line. Celebrity-owned or endorsed makeup and skincare brands are becoming increasingly popular among GenZ and millennials.
In a statement on Wednesday, Elf said it would pay $800 million to the shareholders of Rhode in a cash and stocks combination. There will also be an additional potential earnout consideration of $200 million subject to certain performance-related conditions.
Elf’s acquisition of Rhode will help the budget beauty brand to diversify its portfolio, its Chief Executive Officer Tarang Amin said.
Rhode is ready for “rocketship growth,” he added.
“Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible,” Elf CEO Tarang Amin said in a statement.
Hailey Bieber to continue in her role
Rhode has seen a rapid growth in business since Hailey Bieber and her business partners Lauren and Michael D. Ratner launched the direct-to-consumer cosmetics brand in 2022. The company gained its popularity primarily through viral videos on TikTok.
Rhode, heavily dependent on Hailey Bieber’s social media influence, sells exclusively through its own website or pop-up stores and has products such as its $18 “peptide lip treatments” that went viral.
On the other hand, Elf offers products priced as low as $2 at US retailers including Walmart, Ulta Beauty and Target.
Hailey Bieber will continue her role as founder and will also act as a “strategic advisor” after the deal closes. The transaction is expected to close in the second quarter of fiscal 2026.
Rhode sells beauty and skincare products including moisture balm, pocket blush and peptide lip treatments.
“e.l.f. Beauty 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,” Hailey Bieber said.
Rhode raked in about $212 million in sales for the year ended March 31 and is planning to start selling at Sephora stores across the US and Canada coming this fall, followed by the UK.
Elf’s deal with Rhode would mark its biggest acquisition to date and follows its $355 million acquisition of skincare company Natrium in 2023.
