Hailey Bieber’s Rhode Skincare Brand Purchased by e.l.f. Beauty in Deal Worth up to $1 Billion

Cosmetics giant e.l.f. Beauty is slated to add to its already plump product lineup, this time via a buyout of relatively new skincare brand Rhode, helmed by celebrity entrepreneur Hailey Rhode Bieber. Hailey Bieber is the wife of pop star Justin Bieber, and her star power may have — at least in part — driven interest in Rhode, which was created only three years ago in 2022.

Despite being a newcomer to the health and beauty segment, Rhode racked up $212 million in net sales in the 12 months that ended March 31. CNBC quoted e.l.f. CEO Tarang Amin on the impetus behind the decision for his company to pursue the acquisition.

“I’ve been in the consumer space 34 years, and I’ve been blown away by seeing this brand over time. In less than three years, they’ve gone from zero to $212 million in net sales, direct-to-consumer only, with only 10 products. I didn’t think that was possible,” Amin said. “So that level of disruption definitely caught our attention.”

For her part, Bieber showed an equal degree of enthusiasm over the pending transaction — and while doing so, pointed out that she wasn’t stepping away from Rhode. Bieber will be staying on as founder, chief creative officer, and head of innovation for the skincare brand as it continues to operate beneath e.l.f.’s larger portfolio.

“We can’t wait to bring rhode to more faces, places, and spaces. From day one, my vision for rhode has been to make essential skin care and hybrid makeup you can use every day,” Bieber said, per an e.l.f. press release. “Just three years into this journey, our partnership with e.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally.”

“As I continue as Founder and step into an expanded role of Chief Creative Officer and Head of Innovation, I look forward to leading the brand into this exciting new chapter of possibilities alongside my Co-Founders Michael D. Ratner and Lauren Ratner, who have helped bring my vision to life from the start,” she added.

e.l.f.’s Purchase of Rhode Valued at a Potential $1 Billion

As for the details surrounding the deal, the aforementioned e.l.f. press release outlined that the company had agreed to purchase Rhode for $800 million in cash and stock, with a further $200 million earnout on the table depending upon how the skincare brand performs over the course of the next three years.

This latest step forward for e.l.f.’s skincare product offerings follows the launch of its own SKIN label in 2020, as well as its acquisition of Naturium in 2023 — the latter move said to have doubled e.l.f’s footprint in the skincare segment.