What the $1B e.l.f. deal means for Rhode’s future

Hailey Bieber has struck a major deal to sell her skincare brand, Rhode, to e.l.f. Beauty in a $1 billion acquisition. The lifestyle and beauty brand, launched in 2022 by the model and influencer, reported $212 million in sales for the year ending March 31, 2025.

e.l.f. Beauty announced the acquisition on Wednesday, which will expand its growing portfolio that already includes e.l.f. Cosmetics, e.l.f. SKIN, Keys Soulcare, Naturium, and Well People. The agreement includes $600 million in cash, $200 million in e.l.f. stock for Rhode’s equity holders, and an additional $200 million in earnouts over three years based on performance targets.

Hailey Bieber, who is married to pop star Justin Bieber, will stay on as chief creative officer and head of innovation. Rhode products are expected to debut in Sephora later this year.

“My vision has always been to create essential skincare and hybrid makeup,” said Bieber in a statement. “Partnering with e.l.f. will help us bring Rhode to more faces and places worldwide.”

e.l.f. CEO Tarang Amin praised Rhode’s disruptive impact in the beauty space, calling it a brand ready for “rocketship growth.” The acquisition reflects e.l.f. Beauty’s ongoing commitment to making prestige beauty more accessible.

This marks one of the largest celebrity brand acquisitions in recent years, following Ryan Reynolds’ $1.3 billion Mint Mobile sale in 2023. The deal is expected to close in early fiscal 2026. If the deal falls through under certain conditions, e.l.f. will owe Rhode a $65 million termination fee, per SEC filings.

The deal sets Rhode up for rapid global expansion, positioning it as a key player in the next era of celebrity-backed beauty brands.