e.l.f. Beauty Acquires Hailey Bieber’s Rhode for $1 Billion
In a blockbuster agreement, e.l.f. Beauty acquires Hailey Bieber’s Rhode for $1 billion, its largest acquisition yet. The acquisition highlights e.l.f.’s aggressive effort to build its skincare business and reach a wider, higher-end consumer. Rhode, which launched just a few years ago, has grown rapidly because of Hailey Bieber’s celebrity status and a focused product range. With this deal, e.l.f. Expects to bring Rhode’s top-selling skincare products to even more consumers worldwide, with the potential for innovative products and wider distribution.
What Does the Deal Signal?
On May 28, 2025, e.l.f. Beauty said it would take over Rhode, the skincare brand founded by model and influencer Hailey Bieber. The deal is worth $800 million in cash and stock, with another $200 million dependent on the performance of Rhode over the next three years.
The biggest acquisition in e.l.f.’s history, the deal reflects the company’s desire to increase its presence in skincare and reach more premium consumers.
Rhode’s Rapid Expansion in Such a Short Time
Rhode launched in 2022 and has already gained momentum. In under three years, the brand reached $212 million in net sales with just 10 products shipped direct-to-consumer online.
e.l.f. CEO Tarang Amin said, “With 34 years in the consumer industry, I’ve rarely seen a brand grow this fast. Going from zero to over $200 million in sales with only direct sales and a small product line is impressive.”
Rhode is also expanding its retail presence with plans to enter Sephora stores across North America and the UK by the end of the year.
Hailey Bieber to Lead Creative Direction
Despitef the acquisition, Hailey Bieber will still be highly engaged with Rhode as Chief Creative Officer and Head of Innovation. She will remain in charge of product development and marketing efforts.
Hailey stated, “My vision for Rhode has always been to make fundamental skincare and hybrid makeup that’s simple to use every day. Collaborating with e.l.f. Beauty allows us to reach more individuals and drive innovation faster around the world.
Under her leadership, Rhode was the top skincare brand in earned media value last year, with media coverage increasing 367% from the previous year.
Why e.l.f. Beauty Chose Rhode
e.l.f. Beauty has built a strong online image, especially among younger shoppers like Gen Z, through organic, engaging marketing on social media platforms like TikTok. Rhode’s high-end, limited product line is compatible with e.l.f.’s online-first model.
While e.l.f.’s products are generally $6.50, Rhode’s products are in the high $20s on average, enabling the company to access a newer, higher-end customer.
Challenges Ahead: Tariffs and Pricing
Despite the opportunity, e.l.f. It is faced with tariffs placed on China, where about 75% of its products are made. The present U.S. tariff on Chinese imports is 30%, which could impact profit.
To offset these costs, e.l.f. will raise product prices by about $1, starting August 1, 2025, while working to ensure affordability of products.
Strong Financial Results Coinciding with the Deal
The deal announcement coincided with e.l.f.’s reporting of strong results for its fiscal fourth quarter. Revenue totaled $333 million, which beat analysts’ expectations of $328 million.
Adjusted earnings per share were 78 cents, which is higher than the expected 72 cents. Sales grew 4% year over year.
However, e.l.f. Did not issue fiscal 2026 guidance due to uncertainty related to tariffs.
Conclusion: A Bold Step for e.l.f. Beauty’s Future
Through the Rhode acquisition, e.l.f. Beauty solidifies its position as a skincare market leader. The collaboration with Hailey Bieber brings creative energy and exposure to a premium market segment.
Despite tariff concerns, e.l.f. is confident that the demand for good skincare will continue even if the economy slows down.