E.l.f. Beauty has entered into a definitive agreement to acquire the celebrity skincare brand Rhode, founded by Hailey Bieber, in a transaction valued at $1 billion. The deal involves $800 million payable at closing through a combination of cash and stock, along with a potential additional earnout of $200 million contingent on the brand’s growth over three years.
According to a statement by E.l.f. Chair and CEO Tarang Amin, both companies share a disruptive vision, and Rhode’s potential for rapid growth aligns with E.l.f. Beauty’s mission. Rhode, which has embraced a skincare philosophy of “one of everything really good,” saw its consumer base more than double and reported $212 million in net sales for the year ending March 31, 2025.
Currently, Rhode products are available only through their website, but E.l.f. plans to introduce them into physical stores with a new partnership with Sephora across North America and the U.K. this year.
Hailey Bieber will maintain her role as founder and continue as Rhode’s chief creative officer and head of innovation. She will also serve as a strategic advisor for the combined entities. Bieber expressed excitement about the opportunity to expand the brand globally with new innovative products.
Michael D. Ratner and Lauren Ratner, along with CEO Nick Vlahos, will continue to lead Rhode from its Los Angeles office. Rhode was recognized as the top skincare brand in earned media value in 2024, demonstrating significant year-over-year growth.
E.l.f. Beauty, a prominent drugstore beauty brand founded in 2004, ranks as the top brand in U.S. cosmetics by units and second in dollar share. It launched its e.l.f. SKIN brand five years ago to enhance its skincare offerings and further expanded by acquiring Naturium in 2023.
The agreement stipulates that e.l.f. Beauty will acquire Rhode for an immediate $800 million, comprised of $600 million in cash and newly issued shares worth $200 million. The transaction, which is anticipated to close in the second quarter of fiscal 2026, includes a potential additional earnout of $200 million based on future growth. Some shares issued will be subject to a lockup agreement, which will be gradually released over one year.
