E.l.f. Beauty Acquires Hailey Bieber’s Rhode in $1 Billion Bet on Beauty Disruption
Key Takeaways:
- E.l.f. Beauty has entered into a $1 billion agreement to acquire Hailey Bieber’s Rhode.
- The deal includes $800M in cash and stock, with a $200M performance-based earn-out.
- Rhode hit $212M in sales in under three years, with rapid growth driven by a minimalist product lineup and strong DTC strategy.
- The acquisition marks E.l.f.’s entrance into Sephora U.S. stores and bolsters its skin care and prestige category presence.
- Bieber will remain onboard as Chief Creative Officer and head of innovation.
E.l.f. Beauty is acquiring Hailey Bieber’s skincare brand Rhode in a landmark $1 billion deal, signaling a rare moment of confidence in an otherwise cautious beauty M&A landscape. The transaction, which includes $800 million in cash and stock at closing and an additional $200 million in performance-based earn-outs, marks the company’s largest acquisition to date and positions Rhode as a key growth driver for the digital-first beauty group.
Launched in 2022, Rhode quickly established itself as a breakout in the celebrity-founded brand space, generating $212 million in net sales within three years through a minimalist, direct-to-consumer model. The brand’s rapid rise was fueled by viral product aesthetics, savvy social media campaigns, and an earned media value of $400 million in 2024 alone. Its retail debut at Sephora, launched this month, sets the stage for a broader retail expansion into the U.S., Canada, and the U.K. by year’s end.
For E.l.f., the acquisition delivers more than just sales momentum. It solidifies the company’s presence in prestige skincare, offers a strategic entry point into Sephora, and brings Rhode’s strong Gen Z community under its roof. The move follows E.l.f.’s 2023 acquisition of Naturium and reflects a pattern of investing in founder-led brands with strong community engagement and scalable infrastructure.
Bieber will stay on as Chief Creative Officer and head of innovation, steering product development and marketing strategy. Rhode’s leadership, including co-founders Michael D. Ratner and Lauren Ratner and CEO Nick Vlahos, will continue to operate the brand from its Los Angeles headquarters.
In an environment where many celebrity brands have struggled to secure buyers, Rhode’s billion-dollar valuation stands out. Its disciplined product approach, selective distribution, and strategic expansion into makeup and body care have helped it carve out a credible blueprint for long-term value in the beauty category.
The acquisition not only strengthens E.l.f.’s growing portfolio but also redefines what a celebrity-founded brand must look like to compete: rooted in authenticity, guided by strategic vision, and designed to scale. As industry players look ahead, Rhode may mark a turning point for the next wave of high-profile beauty M&A.