Hailey Bieber sells Rhode to E.l.f. Beauty in landmark $1bn deal
Hailey Bieber just gave beauty its latest billion-dollar moment, announcing she has sold her cult-favourite skincare and colour cosmetics brand Rhode to E.l.f. Beauty in a blockbuster deal valued at $1 billion (£740 million).
Launched in 2022, Rhode quickly went from niche to necessity, driven by Bieber’s celeb status and her now-iconic 'glazed doughnut skin'. Popular for both its skincare and cosmetics, Rhode has propelled beauty trends such as 'clean girl aesthetic' and 'glazed doughnut' supported by products such as its bestselling Glazing Milk and Peptide Glazing Fluid. By 2024, the company reported $212 million (£165 million) in sales in the 12 months ending 31 March.
But how did it shoot to success in such a short time? Rhode's direct-to-consumer business, limited product count and strong digital presence certainly didn't hurt. Adding fuel to its successful fire, it recently announced it is expanding its global retail presence with plans to launch at Sephora US later this year.
Bieber announced the news on Instagram, writing: "When I launched @rhode in 2022, I always had big dreams for the company, and the most important thing to me is to keep bringing rhode to more spaces, places, and faces globally. So today, I am so incredibly excited and proud to announce that we are partnering with E.l.f. Beauty as we step into this next chapter in the world of Rhode.
"I found a like-minded disruptor with a vision to be a different kind of company that believes in big ideas and innovation in the same way that I do and will help us continue to grow the brand. I feel invigorated, excited and more ready than ever to step into an even bigger role as Chief Creative Officer, and Head of Innovation of Rhode as well as strategic advisor to E.l.f. Beauty."
The deal includes $800 million (£624 million) in cash and stock at closing, with an additional $200 million (£156 million) in potential earnouts based on performance over three years. To fund the deal, E.l.f. secured $600 million (£468 million) in debt financing.
For E.l.f., which previously acquired Naturium for $333 million (£260 million) in 2023 and incubated Keys Soulcare with Alicia Keys, the Rhode deal solidifies the brand’s positioning in prestige skincare and potentially opens the doors to Sephora not only in the US but also in the UK.
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As part of the deal, Bieber will step into an expanded role as Chief Creative Officer and Head of Innovation, while also acting as a strategic advisor to the E.l.f. Beauty group. Rhode’s co-founders, Michael and Lauren Ratner as well as CEO Nick Vlahos, will continue to lead operations.
Bieber concluded: "Thank you to the amazing Rhode team who have helped me build over the years. I couldn’t have done it without all of you. And to our rhode community, thank you for being the most supportive and for being on this journey, this next chapter is going to be even more incredible together!
"As I’ve said, this is only the beginning. 🤍"
