Hailey Bieber sells makeup brand Rhode to Elf Beauty in $1B deal
Rhode, Hailey Bieber’s Makeup and Skincare Brand, Acquired by Elf Beauty for $1 Billion
In a major deal, Elf Beauty has acquired Rhode, the popular makeup and skincare brand founded by model Hailey Bieber, for approximately $1 billion US. The acquisition gives Elf Beauty access to a celebrity-endorsed product line that has gained immense popularity among Gen Z and millennials.
Under the terms of the deal, Elf will pay Rhode shareholders $800 million US in a combination of cash and stock, with an additional potential earn-out consideration of $200 million US based on certain performance-related conditions.
Reports emerged last month that Bieber was considering selling the brand, which was launched in 2022 and quickly gained a following for its TikTok-viral products, such as the $18 US “peptide lip treatments.”
For Elf Beauty, the acquisition represents a strategic shift as the company expands into the prestige beauty market. With demand weakening among mass market customers due to high inflation, Elf is looking to tap into the success of Rhode and leverage Bieber’s social media influence.
Elf, known for its affordable products priced as low as $2 US to $3 US, is sold at major retailers like Walmart, Ulta Beauty, Target, Shoppers Drug Mart, and Rexall. In contrast, Rhode sells exclusively through its website and pop-up stores, targeting a more niche market.
Hailey Bieber expressed excitement about the acquisition, stating, “Elf 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.”
Rhode generated approximately $212 million US in sales for the fiscal year ending March 31 and is set to expand its presence by launching at Sephora stores in the U.S., Canada, and the U.K. in the coming months.
Elf CEO Tarang Amin highlighted the strategic importance of the acquisition, stating, “Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible.”
This acquisition marks Elf’s largest to date, following its $355 million US purchase of skincare company Natrium in 2023. Hailey Bieber will continue to serve as the founder of Rhode and will also take on the role of a strategic advisor post-acquisition.
The transaction is expected to close in the second quarter of fiscal 2026, signaling a new chapter for both Elf Beauty and Rhode as they aim to capitalize on the growing demand for prestige beauty products.
