In a landmark move within the beauty industry, e.l.f. Beauty has acquired Hailey Bieber's skincare brand, Rhode, for a staggering $1 billion. This acquisition underscores the meteoric rise of Rhode, which, since its inception in 2022, has rapidly become a formidable player in the skincare market.
A Strategic Acquisition
The deal comprises $600 million in cash and $200 million in e.l.f. stock, with an additional $200 million contingent upon Rhode's performance over the next three years. This acquisition marks e.l.f. Beauty's most significant purchase to date, reflecting its ambition to expand its portfolio with brands that resonate with younger demographics and align with contemporary beauty trends.
Rhode's Meteoric Rise
Founded by model and entrepreneur Hailey Bieber, Rhode quickly gained traction with its minimalist aesthetic and focus on vegan, cruelty-free products. The brand reported $212 million in net sales in the 12 months ending March 31, 2025, a testament to its rapid growth and strong consumer appeal.
Rhode's success can be attributed to its strategic marketing, leveraging Hailey Bieber's personal brand and social media presence to create buzz around product launches. The brand's emphasis on simplicity and efficacy resonated with consumers seeking straightforward skincare solutions.
Hailey Bieber's Continued Involvement
Despite the acquisition, Hailey Bieber will maintain a pivotal role in Rhode's future. She will continue as the Chief Creative Officer and Head of Innovation, overseeing product development and brand strategy. Additionally, she will serve as a Strategic Advisor to e.l.f. Beauty, ensuring that Rhode's original vision remains intact under its new ownership.
Market Impact and Future Prospects
The acquisition has already made waves in the financial markets, with e.l.f. Beauty's stock experiencing a significant surge following the announcement. The company reported a 47% year-over-year earnings increase, highlighting the positive investor sentiment surrounding the deal.
Looking ahead, Rhode plans to expand its retail presence, with intentions to enter Sephora stores in North America and the U.K. by the end of the year. This move aims to transition Rhode from an online-exclusive brand to one with a robust brick-and-mortar footprint, further solidifying its position in the competitive skincare market.
Conclusion
The acquisition of Rhode by e.l.f. Beauty for $1 billion marks a significant milestone in the beauty industry, highlighting the growing influence of celebrity-founded brands and the importance of aligning with contemporary consumer values. With Hailey Bieber's continued involvement and e.l.f. Beauty's strategic support, Rhode is poised for sustained growth and innovation in the years to come.
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