e.l.f. Beauty has revealed its plans to acquire Hailey Bieber’s skincare and cosmetics brand, Rhode, in a deal that could reach a total value of $1 billion (£743 million).
This transaction, among the biggest celebrity-led beauty brand acquisitions to date, consists of $600 million (£446 million) in cash, $200 million (£149 million) in e.l.f. Beauty shares, and an additional $200 million (£149 million) in potential payouts depending on Rhode’s growth over the next three years.
Bieber launched Rhode—named after her middle name—in Los Angeles during the summer of 2022, motivated by her frustration with the overwhelming variety of skincare products available.
She told Forbes in 2022 that she aimed to offer “a very edited and curated, intentional shopping process for people.”
The former model explained, “I’ve been travelling around the world since I was 17, working and travelling on my own, going to different places and doing different shoots, so a lot of flying. And that was something that made me think about what I would want in my carry-on bag.”
Rhode quickly gained popularity, propelled by Hailey Bieber’s high profile as the wife of pop star Justin Bieber and her massive social media following of nearly 55 million Instagram users.
According to e.l.f., Hailey Bieber will continue to play an active role in the brand, retaining her positions as chief creative officer and head of innovation.
