E.l.f. Acquires Rhode: $1 Billion Deal
- Beauty is set to acquire Rhode, the skincare brand founded by Hailey bieber, in a deal potentially worth $1 billion.
- Beauty, expressed his admiration for Rhode's rapid growth, noting its impressive $212 million in net sales within three years with only 10 products.
- Bieber will remain with Rhode as chief creative officer and head of innovation.
E.l.f. Beauty is poised to revolutionize the skincare market,announcing its monumental acquisition of Hailey biebers Rhode brand in a deal valued at up to $1 billion. This strategic move signals E.l.f.’s ambitious expansion, aiming to capture a more affluent consumer base.rhode, which generated an remarkable $212 million in revenue, will continue under Bieber’s creative leadership, fueling future growth. This union of a rapidly growing skincare brand with E.l.f.’s established market presence will expand distribution and influence. Also, the company’s Q4 earnings outpaced projections! Stay informed with News Directory 3 for updates as this powerful partnership unfolds, reshaping the beauty landscape. Discover what’s next.
E.l.f. Beauty to acquire Hailey bieber’s Rhode, Expanding Skincare Reach
Updated May 29, 2025
E.l.f. Beauty is set to acquire Rhode, the skincare brand founded by Hailey bieber, in a deal potentially worth $1 billion. The move signifies E.l.f.’s strategic expansion into the skincare market and its ambition to attract a more affluent customer base. The acquisition, comprised of $800 million in cash and stock, includes a possible $200 million payout based on Rhode’s performance over the next three years. The deal is expected to close in the second quarter of fiscal 2026.
Tarang Amin, CEO of E.l.f. Beauty, expressed his admiration for Rhode’s rapid growth, noting its impressive $212 million in net sales within three years with only 10 products. He emphasized the brand’s disruptive impact on the beauty industry.
Bieber will remain with Rhode as chief creative officer and head of innovation. She will continue to lead creative direction, product growth, and marketing initiatives. Rhode, launched in 2022, has experienced substantial growth, doubling its customer base in the past year. The brand plans to launch in sephora stores across North America and the U.K. later this year.
The acquisition of Rhode allows E.l.f. to further penetrate the skincare market, appealing to a higher-income demographic. While E.l.f.’s core products are priced around $6.50, Rhode’s average price point is in the high $20s.
“From day one, my vision for rhode has been to make essential skin care and hybrid makeup you can use every day,” said Bieber. “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.”
E.l.f. Beats Earnings Expectations
Alongside the acquisition proclamation, E.l.f. Beauty reported fiscal fourth-quarter results that exceeded Wall Street’s expectations. Adjusted earnings per share were 78 cents, surpassing the expected 72 cents.Revenue reached $333 million, exceeding the projected $328 million.
The company’s net income for the quarter ending March 31 was $28.3 million, or 49 cents per share, compared to $14.5 million, or 25 cents per share, the previous year. Sales increased to $332.7 million, up approximately 4% from $321.1 million.
What’s next
Looking ahead, the integration of Rhode into E.l.f. beauty’s portfolio is expected to drive further growth in the skincare category. The company will focus on leveraging its digital marketing expertise and expanding Rhode’s distribution channels to reach a wider audience.