E.l.f. Beauty has signed a definitive agreement to acquire rhode, the fast-rising beauty brand founded by Hailey Bieber, in a deal valued at $1 billion. The acquisition adds another skin-focused brand to e.l.f. Beauty’s portfolio and positions the company for broader expansion across both digital and physical retail channels.
BEAUTY BUSINESS
Founded by Bieber in 2022, rhode built a loyal customer base with its concise, ingredient-driven lineup of skincare and hybrid makeup. With a tagline of offering “one of everything really good,” the brand became known for multi-purpose products that deliver visible results and a glazed finish, a term popularized by Bieber herself. Rhode’s net sales reached $212 million in the 12-month period ending March 31, 2025, more than doubling its consumer base over the past year.
The transaction includes $800 million to be paid at closing, $600 million in cash and $200 million in stock, plus a potential $200 million earnout over three years, depending on future growth. The deal values rhode at approximately 3.8 times its trailing 12-month revenue and includes lock-up provisions on equity for founders and key staff. The acquisition is expected to close in the second fiscal quarter of 2026, pending regulatory approvals.
Hailey Bieber will continue to lead the creative vision of the brand as Founder, Chief Creative Officer, and Head of Innovation. She will also serve as a Strategic Advisor to e.l.f. Beauty. Bieber’s cultural influence has been instrumental in rhode’s rapid rise, with the brand becoming the No. 1 skincare label in Earned Media Value in 2024, growing 367% year over year.
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“This partnership with e.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community,” said Bieber in a statement. “As I continue in my role and step into expanded responsibilities, I’m excited to guide rhode through this next chapter with the same focus and creativity that started it all.”
Co-founders Michael D. Ratner and Lauren Ratner will remain in leadership roles, along with rhode CEO Nick Vlahos. The team will continue to operate out of Los Angeles and maintain the brand’s direct-to-consumer focus, while also preparing for its first retail rollout with Sephora in North America and the U.K. later this year.
For e.l.f. Beauty, the acquisition is a strategic step into the prestige skincare space and a way to build on its already strong foundation in color cosmetics and skincare. Since launching e.l.f. SKIN and acquiring Naturium in 2023, the company has continued to grow its presence across price points and platforms. The addition of rhode extends this reach further, both in product category and retail distribution.
“We found a like-minded disruptor in rhode,” said Tarang Amin, Chairman and CEO of e.l.f. Beauty. “This brand aligns perfectly with our mission and gives us an opportunity to scale innovation, access new consumers, and partner with one of today’s most influential beauty founders.”
