In a game-changing move for the beauty industry, e.l.f. Beauty has officially agreed to acquire Rhode, a fast-growing, lifestyle beauty brand founded by Hailey Bieber. This powerful alliance between e.l.f. Beauty and Rhode set the stage for potential global expansion, and it is one of the biggest celebrity beauty acquisitions in recent years. With this big move, e.l.f. Beauty is not just buying another brand, it is investing in the future of skin-focused beauty! Here is a breakdown of the massive deal, what it means for both companies, and why this move is such a big deal across the beauty landscape!
E.l.f. and Rhode Partnership
E.l.f. Cosmetics, founded in 2004, has been able to provide access to the best beauty for every eye, lip, and face, and is the No. 1 brand in units across U.S. cosmetics and No. 2 in dollar share. By launching e.l.f. Skin, about five years ago, the company was able to accelerate its potential in skincare, and this acquisition of Rhode marks the brand’s further diversification of e.l.f Beauty’s business as well as into newer retail partners, such as Sephora.
When Hailey Bieber first set out to create Rhode and eventually launched it in June 2022, she did so with the idea of her skin philosophy, which is “one of everything really good.” Rhode created multitasking and effective products, made with innovative ingredients. In just the last year, the company has doubled its customer base and driven a total of $212 million in net sales.
In the acquisition, Bieber will continue her role as Founder and additionally serve as Rhode’s Chief Creative Officer and Head of Innovation, helping to continue overseeing creative, product innovation, and marketing. In addition, she will serve as a Strategic Advisor to the combined companies. With her influence, paired with the brand’s marketing strategy and team, helped fuel Rhode to be the No. 1 skin care brand in Earned Media Value in 2024.
Transaction Details
This $1 billion deal is comprised of $800 million of consideration payable at closing in a combination of cash and stock, subject to customary adjustments, and an additional potential earnout consideration of $200 million based on the future growth of the brand over a three-year timeframe. According to e.l.f. Chairman and CEO Tarang Amin, per the press release, “e.l.f Beauty found a like-minded disruptor in Rhode” and states that he’s very excited about the company’s ability to “break beauty barriers, fully aligning with e.l.f. Beauty’s vision”.
Final Thoughts
E.l.f Beauty’s mission has always been clear: to make the best of beauty accessible to every eye, lip, and face. Every brand is led by purpose and driven by results. With their clear, vegan products, all of which are double-certified by Leaping Bunny and PETA as cruelty-free, and the first beauty company with Fair Trade Certified facilities. Now with the acquisition of Rhode and the past success of both brands, this union could reshape what the future of modern beauty looks like; the sky’s truly the limit!
