In a defining moment for celebrity-founded beauty brands, Hailey Bieber’s skincare company, Rhode, is set to be acquired by e.l.f. Beauty in a deal valued at up to $1 billion. The acquisition underscores the growing influence of modern, digitally native brands in the beauty space and marks a significant move for e.l.f. as it continues to expand its premium offerings.
A Transformational Agreement
According to the terms of the deal, e.l.f. Beauty will initially pay $800 million through a combination of cash and stock. An additional $200 million in potential earn-outs will be awarded based on Rhode meeting specific performance benchmarks over the next three years, bringing the total transaction value to $1 billion.
This acquisition is a strategic win for e.l.f., representing its largest acquisition to date and highlighting the company’s intention to solidify its presence in the prestige skincare and beauty segment. Rhode, known for its minimalist approach and clean aesthetics, has built a strong consumer following since its launch.
The Rise of Rhode
Founded by Hailey Bieber in 2022, Rhode quickly emerged as a trendsetting label in the crowded skincare industry. Focused on minimalist skincare with a science-backed approach, the brand gained traction through its curated product lineup and Bieber’s highly visible digital presence. Rhode’s brand identity resonated with Gen Z and millennial audiences, helping it achieve significant traction both online and through select retailers.
In just under three years, Rhode reported impressive net sales of $212 million for the twelve-month period ending March 2025, reflecting its rapid growth and consumer demand.
Hailey Bieber’s Continuing Role
As part of the acquisition, Hailey Bieber will remain actively involved in Rhode’s future. She will take on the roles of Chief Creative Officer and Head of Product Innovation, ensuring that the brand maintains its original voice, values, and aesthetic. In addition, she will serve as a strategic advisor across the broader e.l.f. Beauty organization.
Bieber emphasized the alignment between her brand and e.l.f.’s mission, highlighting their shared vision for clean, innovative beauty that is inclusive, accessible, and future-forward.
Strategic Expansion Ahead
Rhode will continue to operate as an independent brand under the e.l.f. Beauty portfolio, which includes other successful labels such as Keys Soulcare. The acquisition will allow Rhode to benefit from e.l.f.’s expansive infrastructure, retail network, and industry expertise, accelerating its ability to scale globally.
Rhode’s expansion into new retail channels such as Sephora in both the U.S. and U.K. is expected by the end of 2025, further increasing its market presence and bringing the brand to an even broader audience.
Industry Implications
This deal arrives at a time when many legacy beauty brands are struggling to maintain relevance, while digitally-native, founder-led companies are thriving. e.l.f. Beauty’s acquisition of Rhode showcases a larger industry trend—established players investing in emerging, celebrity-driven brands with strong digital followings and innovative product offerings.
The success of Rhode also reinforces the viability of celebrity-founded beauty lines that go beyond branding, focusing on product efficacy and consumer experience. For e.l.f., this deal is not only a financial investment but also a cultural one—leveraging Hailey Bieber’s global influence to appeal to a younger, trend-conscious demographic.
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