Hailey Bieber’s beauty and skincare brand Rhode has been acquired by Elf Beauty for $1 billion, pending approvals. The acquisition marks one of the most high-profile beauty deals in recent years.
According to Bieber, she was drawn to Elf Beauty because of their strong sense of community and disruptive strategy within the beauty space. She will continue her role as founder while expanding her remit as Rhode’s chief creative officer and head of innovation.
Elf Beauty CEO Tarang Amin describes the partnership as “the perfect marriage,” saying that Hailey Bieber is a thoughtful founder with great strategic instinct. The deal includes $800 million in cash and stock, as well as an earn-out consideration of $200 million based on future brand growth over a three-year timeframe.
Rhode’s rapid growth has been driven by its highly shareable product aesthetics and its cultivation of a community beyond products. The brand has driven $400 million in earned media value (EMV) in 2024, surpassing the industry benchmark.
The acquisition signals a shift in what it takes to build long-term value as a celebrity brand moving forward. Bieber’s involvement in operations, product development and ownership is increasingly non-negotiable for high-profile founders.
Bieber will act as a strategic advisor for both Rhode and Elf Beauty. She stated that the partnership with Elf Beauty positions her brand for expansion into new territories, including Brazil.
Source: https://www.voguebusiness.com/story/beauty/rhode-to-be-acquired-by-elf-beauty-for-dollar1-billion