E.l.f. Beauty announced Wednesday it will acquire Hailey Bieber’s skincare brand Rhode in a deal valued at up to $1 billion, marking the company’s largest acquisition to date. The agreement includes $800 million in cash and stock, with an additional $200 million earnout based on Rhode’s performance over the next three years. The transaction is expected to close in the second quarter of E.l.f.’s fiscal 2026 or later this year.
According to CNBC, the move strengthens E.l.f.’s growing position in the skincare category. CEO Tarang Amin said, “I’ve been in the consumer space 34 years, and I’ve been blown away by seeing this brand over time. In less than three years, they’ve gone from zero to $212 million in net sales, direct-to-consumer only, with only 10 products. I didn’t think that was possible.”
In a statement, Hailey Bieber shared her excitement about the partnership: “From day one, my vision for Rhode has been to make essential skin care and hybrid makeup you can use every day. Just three years into this journey, our partnership with E.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally.”
Following the announcement and its fiscal fourth-quarter earnings beat, E.l.f. shares rose 11% on Thursday. Goldman Sachs analysts described the deal as “a strategic positive,” noting it positions E.l.f. within the prestige skincare segment and helps diversify its consumer base. Although Rhode is currently direct-to-consumer, retail expansion, particularly into Sephora, is expected.
Founded in 2022, Rhode has doubled its customer base and brought in $212 million in revenue over the past year. Under Bieber’s leadership as chief creative officer and head of innovation, the brand achieved the No. 1 spot in skincare earned media value, reporting 367% year-over-year growth.
The acquisition follows E.l.f.’s $355 million purchase of Naturium and signals continued interest in attracting higher-income consumers, even amid headwinds from China tariffs.
