A landmark beauty acquisition
Hailey Bieber’s Rhode has been acquired by Elf Beauty for $1 billion. The deal, pending regulatory approval, marks one of the most significant beauty acquisitions in recent years. Rhode launched in 2022 and quickly gained momentum in the skincare market.
Bieber partnered with JPMorgan Chase in April to explore the brand’s sale. Just two months later, the deal with Elf Beauty was announced. Bieber will remain founder and expand her role as chief creative officer and head of innovation.
“Finding a home for Rhode was scary,” said Bieber. “But Elf’s sense of community stood out.”
She admired Elf’s disruptive marketing and approach to beauty. Bieber said Elf’s offer felt authentic, unlike traditional corporate deals.
Praise from Elf Beauty’s CEO
Elf Beauty CEO Tarang Amin called the acquisition a “perfect marriage.” He praised Bieber’s strategic instinct and Rhode’s rapid growth. The brand hit $212 million in net sales with only 10 products and a direct-to-consumer model.
Hailey Bieber’s Rhode joins Elf’s growing portfolio, which includes Naturium, Keys Soulcare, and Well People. The acquisition includes $800 million in cash and stock and a $200 million earn-out.
Rhode’s rise came from smart design, viral moments, and Bieber’s influence. The brand recently launched at Sephora, boosting its retail credibility beyond DTC channels.
In 2024, Rhode generated $400 million in earned media value and a 3.75% engagement rate. The brand’s aesthetic, limited product range, and targeted campaigns set it apart.
“I want to build the biggest beauty brand in the world,” Bieber said. “Elf can help us get there.”
Industry experts view the deal as a rare billion-dollar move in today’s cautious M&A landscape. It signals confidence in Rhode’s value and potential for global reach.
Elf aims to grow Rhode internationally, citing demand in markets like Brazil. Bieber and the Elf team plan to scale the brand strategically across retail and digital platforms.
This deal positions Rhode as a new model for celebrity brands. It blends authenticity, innovation, and substance for long-term success in beauty.
