Hailey Bieber announced the sale of her skincare brand Rhode to e.l.f. Beauty in a deal worth up to $1 billion. This acquisition is one of the largest beauty transactions in recent years.
Rhode has achieved what many beauty insiders thought was impossible. Since its launch in 2022, the brand has generated $212 million in revenue through direct-to-consumer sales alone using only ten products. This explosive growth caught the attention of e.l.f. Beauty CEO Tarang Amin, who admitted to being surprised by the brand’s rapid success: “I’ve spent 34 years in the consumer industry, and witnessing this brand’s evolution has truly astonished me. In under three years, they’ve skyrocketed zero to $212 million net sales solely through direct-to-consumer channels, with just ten products. I never imagined that could happen,” Amin told CNBC.
The acquisition has a complex structure that reflects Rhode’s potential for future growth.
e.l.f. Beauty will pay $800 million upfront, consisting of $600 million in cash and $200 million in newly issued stock. An additional $200 million earnout could be paid out over three years, contingent on Rhode’s performance.
This pricing gives Rhode a revenue multiple of approximately 3.8 times its latest twelve-month sales, making Rhode the youngest beauty brand to achieve a billion-dollar valuation. The deal is expected to close in the second quarter of e.l.f.’s fiscal year 2026.
Instead of stepping away from her creation, Hailey Bieber will expand her role within the company. She will serve as Rhode’s Chief Creative Officer and Head of Innovation, as well as a strategic advisor to e.l.f. Beauty. This arrangement allows her to maintain creative control while benefiting from e.l.f.’s distribution network and resources.
“From the very beginning, my vision for Rhode has been to create essential skincare and hybrid makeup that can be used daily. Just three years into this journey, our alliance with e.l.f. Beauty presents an incredible opportunity to enhance and speed up our ability to connect with a broader community,” Bieber stated.
The timing of this acquisition coincides with Rhode’s planned expansion into physical retail. The brand will launch in Sephora stores across North America and the United Kingdom this fall. This move represents a significant shift from Rhode’s exclusively online presence and opens new revenue streams.
For e.l.f. Beauty, which primarily operates through mass-market retailers, the Rhode acquisition provides entry into the prestige beauty channel via Sephora. This strategic positioning enables the company to reach higher-income consumers while maintaining its affordable brand identity through other product lines.
The acquisition reflects broader trends in the beauty industry where social media influence is increasingly driving brand valuations. Rhode has achieved impressive awareness metrics, with data showing 18% overall brand awareness and 33% awareness among consumers aged 18–34. However, the brand’s heavy reliance on Hailey Bieber’s personal brand presents opportunities and risks alike.
Initially, industry analysts expressed skepticism about whether any buyer would pay $1 billion for such a young, celebrity-dependent brand. The successful completion of this deal may encourage other celebrity founders to pursue similar exit strategies.
e.l.f. Beauty’s aggressive expansion into skincare follows its acquisition of Naturium for $355 million in 2023. Alongside the Rhode announcement, the company reported strong financial results, with net sales increasing 28% to $1.3 billion in fiscal year 2025. This marks the company’s 25th consecutive quarter of net sales growth.
Rhode has achieved impressive financial results, including doubling its customer base over the past year while maintaining an exclusively direct-to-consumer model. Rhode’s success demonstrates the power of targeted product development combined with effective social media marketing.
The merger creates opportunities for both brands to leverage their respective strengths: e.l.f. Beauty brings operational expertise, manufacturing capabilities, and global distribution networks. Rhode contributes brand prestige, social media savvy, and a devoted customer base willing to pay premium prices.
This deal positions both companies for significant expansion: e.l.f. Beauty gains access to the lucrative prestige market, and Rhode prepares for its next phase of global growth under new ownership.
