American model and media personality Hailey Bieber has sold her beauty brand Rhode to E.l.f Beauty in a landmark deal valued at $1 billion, marking one of the most significant acquisitions in the beauty industry this year.
Bieber announced the acquisition on Wednesday evening through her Instagram story with a simple message: "E.l.f acquired Hailey Bieber's Rhode in a $1 billion deal."
According to details of the transaction, E.l.f Beauty will acquire Rhode for $800 million in a combination of cash and stock, with an additional performance-based payout of $200 million tied to the company's future sales performance.
Leadership Continuity
Despite the acquisition, Bieber will maintain her leadership role within the company. She will continue to serve as CEO and head of innovation at Rhode while also taking on a new role as a strategic advisor at E.l.f Beauty.
The deal is expected to be finalized later in 2025, pending regulatory approvals and standard closing conditions.
Rhode, which Bieber co-founded in 2022, has quickly established itself as a prominent player in the competitive beauty market. The brand's rapid growth from launch to billion-dollar valuation in just three years demonstrates its strong market position and consumer appeal.
Strategic Acquisition
This acquisition represents a significant expansion for E.l.f Beauty, which has been strategically growing its portfolio of beauty brands. The addition of Rhode, with its celebrity founder and established customer base, positions E.l.f to strengthen its market presence particularly among younger consumers.
The beauty industry has seen several high-profile acquisitions in recent years, but the Rhode deal stands out for both its valuation and the retention of its founder in key leadership positions.
Industry analysts suggest this acquisition model, which preserves brand identity while providing resources for expansion, could become increasingly common as larger beauty conglomerates look to capture market share through established brands with loyal followings.
