Hailey Bieber’s Rhode Snapped Up by e.l.f. Beauty in Stunning $1 Billion Acquisition

Beauty industry watchers woke up to a blockbuster this morning: e.l.f. Beauty has entered a definitive agreement to acquire Hailey Bieber’s two-year-old skincare label, rhode, in a cash-and-stock transaction valued at $1 billion. The deal instantly propels rhode—from viral TikTok darling to billion-dollar brand—into the portfolio of one of the fastest-growing publicly traded cosmetics companies in the United States. e.l.f. Beauty CEO Tarang Amin said the acquisition “adds a high-performance, skin-first line that resonates deeply with Gen Z and millennial consumers,” noting that rhode’s minimalist aesthetic and focus on barrier-supporting ingredients complements e.l.f.’s own value-driven, cruelty-free ethos. Founded in June 2022, rhode launched with just three products but quickly amassed wait-lists topping 700,000 shoppers, thanks to Bieber’s 52-million-strong Instagram following and an aggressive influencer seeding strategy. According to the companies, rhode more than doubled net revenue in the past 12 months and maintains margins on par with prestige skincare, despite its mid-tier pricing. Analysts credit the brand’s streamlined assortment—Peptide Lip Treatment, Barrier Restore Cream, Glazing Milk, and a limited-edition tinted lip peptide—as a key differentiator in an overcrowded category. Under the terms of the agreement, Bieber will remain the public face of rhode and retain an undisclosed minority stake, while day-to-day operations shift to e.l.f.’s Oakland headquarters. The parent company plans to leverage its global supply chain and digital marketing engine to expand rhode into brick-and-mortar chains such as Target and Ulta, as well as new international territories across Europe and Asia. Industry experts say the timing is strategic: premium skincare continues to outpace color cosmetics, with 2024 U.S. prestige skin sales up 14 percent year-over-year, according to Circana. “e.l.f. is buying more than revenue—it’s buying cultural capital,” notes beauty consultant Faith Xiong, pointing to rhode’s 2.3 billion TikTok views under the hashtag #rhodeskincare. The $1 billion price tag marks one of the largest beauty exits for a celebrity-founded brand since Coty’s $600 million minority investment in Kylie Cosmetics in 2019. It also underscores a broader M&A wave: L’Oréal’s 2023 purchase of Aesop for $2.5 billion and Estée Lauder’s $2.8 billion acquisition of Tom Ford Beauty exemplify conglomerates chasing high-growth, culturally relevant labels. For Bieber, the sale fulfills her stated mission to “make efficacious skincare accessible without compromising aesthetics”—and validates her pivot from model to beauty mogul. In a joint statement, she thanked fans for “turning a simple glazing routine into a global phenomenon,” while teasing “category-expanding innovation” on the horizon. Pending regulatory approval, the transaction is expected to close in Q3 2025. Until then, consumers can still shop rhode exclusively online, but expanded distribution—and fresh product drops—are likely just months away.