Hailey Bieber Sells Rhode to e.l.f. Beauty in $1 Billion Deal: What It Means for the Beauty Industry

In a landmark move shaking up the beauty industry, e.l.f. Beauty has announced its acquisition of Hailey Bieber's skincare brand, Rhode, for a staggering $1 billion. This deal, finalized on May 28, 2025, marks one of the most significant celebrity beauty brand acquisitions in recent years.

The Deal Breakdown

The acquisition comprises $600 million in cash, $200 million in newly issued e.l.f. Beauty shares, and a potential $200 million earn-out over three years based on Rhode's performance. Rhode, launched by Hailey Bieber in June 2022, has rapidly gained popularity among younger consumers, offering skincare products and makeup items like blushes and lip products. 

Hailey Bieber's Continued Role

Despite the sale, Hailey Bieber will remain deeply involved with Rhode. She will serve as the brand's Chief Creative Officer and Head of Innovation, overseeing creative direction, product development, and marketing. Additionally, she will act as a strategic advisor to e.l.f. Beauty. 

Strategic Implications for e.l.f. Beauty

This acquisition allows e.l.f. Beauty to diversify its portfolio with a fast-growing brand that aligns with its mission to make prestige beauty accessible. Rhode's strong online presence and popularity among Gen Z consumers complement e.l.f.'s existing offerings. 

e.l.f. Beauty's stock surged 12% following the announcement, reflecting investor confidence in the strategic move. 

Expansion Plans

Currently, Rhode's products are available exclusively online. However, plans are underway to expand into Sephora stores in North America and the U.K. by the end of 2025, increasing the brand's accessibility and market reach. 

Conclusion

The acquisition of Rhode by e.l.f. Beauty signifies a pivotal moment in the beauty industry, highlighting the growing influence of celebrity-founded brands and the strategic moves by established companies to capture new market segments.As Hailey Bieber continues to play a significant role in Rhode's evolution, consumers can anticipate innovative products and broader availability in the near future.

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