The Deal: A Billion-Dollar Beauty Merger

On May 28, 2025, e.l.f. Beauty announced its acquisition of Hailey Bieber’s skincare brand, Rhode, in a deal valued at $1 billion. The agreement includes an upfront payment of $800 million—comprising $600 million in cash and $200 million in stock—with an additional $200 million contingent on Rhode’s performance over the next three years .

Hailey Bieber will continue to lead Rhode as Chief Creative Officer and Head of Innovation, overseeing product development and brand strategy. She will also serve as a strategic advisor to e.l.f. Beauty .

Context: Rhode’s Rapid Rise

Launched in June 2022, Rhode quickly gained traction in the beauty industry with its minimalist skincare products, such as the Peptide Glazing Fluid and Barrier Restore Cream. The brand achieved $212 million in net sales for the fiscal year ending March 31, 2025 .

Rhode’s success is attributed to its strong social media presence and innovative marketing strategies. In 2024, Hailey Bieber generated $2.2 billion in Earned Media Value (EMV), making her the most impactful beauty influencer of the year.

Strategic Implications for e.l.f. Beauty

This acquisition marks e.l.f. Beauty’s expansion into the prestige skincare market, complementing its existing portfolio of affordable, vegan, and cruelty-free products. The company aims to leverage Rhode’s innovative approach and strong brand identity to reach a broader global audience.

Rhode Beauty Products

e.l.f. Beauty’s CEO, Tarang Amin, highlighted the alignment between the two brands, stating that Rhode’s disruptive and barrier-breaking approach resonates with e.l.f.’s mission to redefine beauty accessibility.

The deal is expected to close in the second quarter of fiscal 2026, pending regulatory approvals.

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