E.l.f. Beauty’s $1 billion acquisition of Rhode: A closer look

E.l.f. Beauty’s landmark acquisition of Hailey Bieber’s Rhode is one of the most significant deals in recent beauty industry history. The transaction, valued at up to $1 billion, consists of $800 million paid at closing ($600 million in cash and $200 million in newly issued e.l.f. Beauty shares) and up to $200 million in earnouts based on Rhode’s performance over the next three years. The deal is expected to close in the second quarter of fiscal 2026, subject to regulatory approvals.

Rhode, launched in 2022 by model and entrepreneur Hailey Bieber, has rapidly become a standout in the crowded beauty market. The brand is best known for its minimalist, science-backed approach to skincare and hybrid makeup, offering just ten core products—ranging from viral peptide lip treatments to multitasking skin glazes—that emphasize efficacy and simplicity.

Rhode’s direct-to-consumer model and Hailey’s massive social media following (over 55 million on Instagram and 15 million on TikTok) have fueled explosive growth, with net sales reaching $212 million in the 12 months ending March 31, 2025.


Hailey Bieber’s vision for Rhode was to create a curated collection of “one of everything really good”—products that are essential, high-performing, and accessible. The brand’s success is attributed not only to its product quality but also to its strong community engagement, with fans regularly queuing for hours at pop-up events and products frequently selling out online. Rhode’s upcoming expansion into Sephora stores across North America and the UK marks a pivotal shift from digital exclusivity to broader retail distribution.

Hailey Bieber’s Continued Role and the Brand’s Future

Following the acquisition, Hailey Bieber will remain deeply involved with Rhode as the brand’s founder and chief creative officer, continuing to drive innovation and product development. In a statement, Bieber expressed excitement about partnering with e.l.f. to bring Rhode to “more faces, places, and spaces,” emphasizing the opportunity for global reach and further innovation.

E.l.f. Beauty’s CEO, Tarang Amin, praised Rhode’s “rocketship growth” and its ability to break beauty barriers, signaling confidence in the brand’s continued success under the new partnership.

The acquisition also comes at a time when rumors about the financial health of Hailey’s husband, Justin Bieber, have surfaced. While these rumors are unconfirmed and unrelated to Rhode’s business, they have added an extra layer of public interest to the deal.

Nevertheless, industry analysts view the acquisition as a strategic move for both e.l.f. Beauty and Hailey Bieber, highlighting the power of celebrity-driven brands in today’s beauty landscape.