Retail Beauty recently reported that Hailey Bieber was exploring a billion-dollar sale of her beauty brand, Rhode. That ambition has now been realised.
E.l.f Beauty has entered a definitive agreement to acquire Rhode, the fast-growing beauty brand founded by Hailey Bieber, in a deal valued at USD $1 billion ($1.5 billion).
The agreement includes USD $800 million ($1.2 billion) payable at closing—USD $600 million ($900 million) in cash and USD $200 million ( $300 million) in e.l.f stock—alongside an earnout of up to USD $200 million ($300 million) based on performance targets over the next three years. The transaction is expected to close in Q2 of Fiscal 2026, pending regulatory approvals.
“E.l.f Beauty found a like-minded disruptor in Rhode,” said e.l.f Chairman and CEO Tarang Amin. “Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible. We are excited by Rhode’s ability to break beauty barriers, fully aligning with e.l.f Beauty’s vision to create a different kind of company. Rhode is a beautiful brand that we believe is ready for rocketship growth.”
Founded in 2022, Rhode has rapidly carved out a space in the DTC beauty market with its minimalist, barrier-supporting skincare and hybrid makeup. The brand generated USD $212 million ($318 million) in net sales in the 12 months ending March 31, 2025, and more than doubled its customer base during that time. Its first in-store retail rollout will commence later this year via Sephora across North America and the UK.
“We can’t wait to bring Rhode to more faces, places, and spaces,” said Hailey Bieber, who will remain as Founder and take on an expanded leadership role as Chief Creative Officer and Head of Innovation. “Just three years into this journey, our partnership with e.l.f 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.”
Bieber will also act as a Strategic Advisor to the combined companies. Co-founders Michael D Ratner and Lauren Ratner, along with CEO Nick Vlahos, will continue leading Rhode from its Los Angeles headquarters, preserving its entrepreneurial culture and nimble approach to product and brand development.
The acquisition is a natural progression for e.l.f Beauty, which has taken a disciplined and strategic approach to expanding its business. E.l.f (short for EyesLipsFace) Cosmetics was founded by Joseph Shamah and Scott-Vincent Borba in June 2004, with the assistance of Shamah’s father, Alan, with a mission to democratise beauty and is now the number one brand by units in US cosmetics and number two by dollar share. In 2020, the company launched e.l.f Skin to capture growth in skincare, followed by the 2023 acquisition of Naturium, which doubled its skincare footprint.
The addition of Rhode deepens e.l.f ’s position in prestige beauty and strengthens its partnership with Sephora, the world’s leading prestige beauty retailer.
“From day one, my vision for Rhode has been to make essential skin care and hybrid makeup you can use every day,” said Bieber. “I look forward to leading the brand into this exciting new chapter alongside my Co-Founders Michael D Ratner and Lauren Ratner, who have helped bring my vision to life from the start.”
E.l.f ’s growing brand portfolio now includes e.l.f Cosmetics, e.l.f Skin, Keys Soulcare, Well People, Naturium, and Rhode—positioning the company as a key player across the mass, masstige, and prestige beauty tiers. The business continues to leverage its speed-to-market model, digital agility, and community-driven strategy to disrupt traditional beauty structures.
The deal has been approved by e.l.f ’s Board of Directors and is subject to customary closing conditions.
Read the AUTUMN ’25 issue of Retail Beauty below:
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