On Wednesday, e.l.f. Beauty made a monumental move in the beauty industry by announcing its acquisition of Rhode, the skincare and hybrid makeup brand founded by Hailey Bieber. The deal, valued at $1 billion, represents one of the largest transactions for a celebrity-backed beauty brand in recent years and underscores the brand’s dramatic rise since its launch in 2022[1][5][6].
Rhode, best known for its minimalist, curated approach and focus on “one of everything really good”, has quickly captured the attention of Gen Z and Gen Alpha consumers. The brand’s core offering centers on efficacious, skin-focused formulas—such as the Peptide Glazing Fluid, Barrier Restore Cream, and Peptide Lip Treatment—designed for daily use and developed with input from top dermatologists and cosmetics chemists[6][3]. In just three years, Rhode has amassed a dedicated online community and generated over $212 million in net sales during the last fiscal year, a testament to its disruptive presence in the crowded beauty space[6][4].
Hailey Bieber, who launched Rhode with co-founders Michael D. Ratner and Lauren Ratner, will remain active in the brand’s future. She will continue her role as founder while also taking on the positions of chief creative officer and head of innovation, overseeing product development, creative direction, and marketing[3][6]. In a statement, Bieber described the partnership with e.l.f. Beauty as a chance to “elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally.”[6]
For e.l.f. Beauty, a company renowned for its affordable, trend-driven products, the acquisition of Rhode is a strategic step toward diversifying its portfolio and further connecting with younger audiences. The $1 billion transaction includes $800 million in cash and stock upfront, with an additional $200 million earnout contingent on Rhode’s performance over the next three years[2][4][6]. “We found a like-minded disruptor in Hailey Bieber and the Rhode team,” said e.l.f. CEO Tarang Amin. “It’s just incredible the level of consumer fervor and community that this brand has been able to build.”[2][4]
The deal marks a milestone for both brands. Rhode’s No. 1 ranking in Earned Media Value among skincare brands and its 367% year-over-year growth in that metric highlight its marketing muscle and cultural relevance[3]. Meanwhile, e.l.f. Beauty now stands to expand its footprint in premium, accessible skincare, reinforcing its commitment to innovation and inclusivity.
Looking ahead, e.l.f. Beauty and Rhode are expected to leverage each other’s strengths, from product innovation to global distribution, setting the stage for transformative growth in the beauty industry. The acquisition is a clear signal that celebrity-backed, digitally native brands are reshaping the landscape—and that consumer enthusiasm for authentic, high-performance skincare shows no signs of slowing down.
Team V.3-UAE
