Rhode, the beauty brand of Hailey Bieber has been acquired by Elf Beauty for $1 billion. The acquisition of Rhode Beauty is pending approvals, making this one of the most high-profile beauty deals in recent years. Rhode and Elf Beauty deal of $1 billion was announced today coming just short of 2 months from after a report in April that stated the brand hired JPMorgan Chase to oversee the sale.
The e.l.f. Beauty on acquiring the American model’s cosmetics and skin-care line, Rhode. “It’s one of the most beautiful businesses I’ve ever seen,” e.l.f Chief Executive Tarang Amin said in an interview.
Rhode Beauty is e.l.f.’s biggest acquisition to date. The maximum it has spent on Naturium in 2023, for $355 million.
Hailey Bieber Rhode sale to e.l.f. Beauty
As per Hailey Bieber, she always admired e.l.f.’s marketing campaigns and disruptive strategy within the beauty space. “I could have gone to a table of suits (referencing brand suitors), but Elf Beauty’s partnership offering was different,” she says.
“Finding a home for Rhode was a really scary process, but as soon as I met the Elf Beauty team, I could tell they had such a strong sense of community and that spoke volumes to me because I know how I feel about our Rhode community,” says Bieber.
Hailey Bieber Staying In Charge
After the sale of Hailey Bieber’s skincare and makeup brand, she will continue as the founder, and also be taking up a new role as Rhode’s chief creative officer and head of innovation, overseeing creative, product innovation and marketing. She will also act as a strategic advisor for both Rhode and e.l.f. Beauty. “[The position] expands my role into the world of beauty even more, and I just want to continue being a force in the space globally,” Bieber explains.
Elf Beauty’s CEO Tarang Amin describes the partnership as the “perfect marriage”. Rhode will join the group’s existing portfolio.
Hailey Bieber Rhode sale distribution
The Rhode deal consists of $800 million in cash and stock. Along with another $200 million based on how Rhode performs over the next three years. It is expected to close later this year.
Rhode’s growth as a brand
Following the brand’s inception in 2022, Rhode has grown rapidly, along with products beyond beauty like the lip gloss phone case, travelling photobooth and pop-ups. According to influencer marketing platform LeftyI, in 2024, Bieber drove $400 million in earned media value (EMV), with an engagement rate of 3.75 per cent, surpassing the 3.6 per cent industry benchmark.
Rhode’s retail debut
Rhode’s retail debut at Sephora last week also boosted the brand’s credibility outside of Bieber’s sphere of influence. Both Bieber and Amin want to focus on retail rollout as part of the retail and distribution strategy lined up for the year.
Raising the bar for the future of celebrity and high-profile-founded beauty players, Rhode has not only raised the bar, but it has helped shed the long-standing industry scepticism that could support other beauty deals possibly on the horizon, such as Rare Beauty, Makeup by Mario, One/Size and Glossier.
E.l.f. buying Rhode diversifies the supply chain
For e.l.f., the desire to diversify its supply chain outside of China is pumped by acquisition of Rhode’s Beauty. More than 75% of e.l.f. products are made in China, and are now subject to 55% tariffs as per the CEO. The company recently raised prices on each of its items by $1. Many of Rhode’s suppliers are based in Europe, the U.S. and other parts of Asia.
What Rhode’s $1 Billion Sale Says About the Future of Celebrity Brands
Rhode Beauty’s deal with e.l.f. signals a shift in what it takes to build long-term value as a celebrity brand moving forward. The future of successful founder-led brands shall rely on more than just name recognition. Today’s high-profile entrepreneurs are expected to be hands-on—driving operations, shaping products, and owning the vision end-to-end.. Rhode exemplifies a new era, where lasting influence is earned through authenticity and strategic depth.
Bieber has high aspirations stating, “I want to be the biggest beauty brand in the world, and I believe that Elf is going to help me get there”.
