E.l.f. Beauty is set to acquire Hailey Bieber’s skincare brand Rhode for a whopping $1 billion, marking the cosmetics company’s largest acquisition ever. The deal is worth $800 million in cash and stock, plus an additional potential $200 million payout based on Rhode’s performance over the next three years.
According to CEO Tarang Amin, E.l.f.’s interest in acquiring Rhode stems from the brand’s remarkable growth, which has gone from zero to $212 million in net sales in just under three years. Bieber will serve as Rhode’s chief creative officer and head of innovation, overseeing creative, product innovation, and marketing.
The acquisition is a strategic move for E.l.f., aiming to expand its presence in skincare and target higher-income consumers. With the brand joining forces with E.l.f., Rhode’s global expansion plans are set to gain momentum, particularly through partnerships with Sephora stores throughout North America and the U.K.
However, the deal comes at an uncertain time for E.l.f., as tariffs on Chinese imports pose a threat to its business profits. The company sources approximately 75% of its products from China, and rising duties could lead to increased costs. Despite this, E.l.f. remains confident in its ability to navigate these challenges and capitalize on the growing demand for high-end skincare.
The acquisition has been met with mixed reactions, as E.l.f.’s shares dropped by around 4% after the announcement. Nevertheless, the deal is expected to close in the second quarter of 2026 or later this year.
Source: https://www.cnbc.com/2025/05/28/elf-beauty-to-acquire-hailey-bieber-brand-rhode-in-1-billion-deal.html