In a major shakeup in the beauty industry, e.l.f. Beauty has announced a definitive agreement to acquire rhode, the skincare and lifestyle brand founded by Hailey Bieber, in a deal valued at $1 billion. The acquisition marks a significant move for e.l.f. as it continues to broaden its footprint beyond mass-market cosmetics into prestige skincare and innovation-led categories.
At the heart of this high-profile acquisition is a shared vision: disruption, innovation, and accessibility. Both brands have carved out reputations as rule-breakers in the beauty space, and their union is poised to accelerate global expansion and market diversification.
Under the agreement, e.l.f. Beauty will pay $800 million at closing—$600 million in cash and $200 million in newly issued shares—with an additional $200 million in potential earnout consideration based on rhode’s future growth over the next three years. The deal represents approximately 3.8x rhode’s trailing 12-month net sales, which totaled $212 million as of March 31, 2025.
“rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible,” said Tarang Amin, Chairman and CEO of e.l.f. Beauty. “We believe rhode is ready for rocketship growth.”
Since its 2022 debut, rhode has evolved into a top-tier disruptor with a cult following. Its clean, multitasking skincare essentials—designed around Bieber’s mantra of “one of everything really good”—have quickly resonated with consumers. Known for its direct-to-consumer model and digital-first marketing, the brand doubled its consumer base over the past year and ranked as the No. 1 skincare brand in Earned Media Value in 2024.
The acquisition also marks a new chapter for Bieber, who will remain at the helm as Founder, while expanding her role to Chief Creative Officer and Head of Innovation. She’ll oversee the brand’s creative, marketing, and product development efforts, while also serving as a Strategic Advisor to e.l.f. Beauty.
“From day one, my vision for rhode has been to make essential skincare and hybrid makeup you can use every day,” said Bieber. “This partnership with e.l.f. Beauty is an incredible opportunity to elevate our mission and bring rhode to more faces, places, and spaces.”
Alongside Bieber, Co-Founders Michael D. Ratner and Lauren Ratner—who helped bring the brand to life from the start—will continue to lead the brand from its Los Angeles headquarters. CEO Nick Vlahos, who has been central to rhode’s operational growth, will also remain in his leadership role.
For e.l.f., this isn’t a first foray into skincare. The company has steadily built a strong skin-focused portfolio over the past five years, launching e.l.f. SKIN and acquiring Naturium in 2023. With rhode, e.l.f. adds a prestige-edge brand with cultural cachet and loyal Gen Z and Millennial consumers, plus a strategic entry point into Sephora—rhode’s first physical retail partner, with plans to launch in North America and the U.K. later this year.
The deal will be financed with $600 million in committed debt and $200 million in stock. A portion of shares issued to rhode’s founders and key team members will be subject to lock-up agreements over the course of one year. The transaction is expected to close in the second quarter of Fiscal 2026, pending customary regulatory approvals.
As e.l.f. Beauty continues to challenge norms with its mission of making high-quality beauty accessible, the acquisition of rhode marks not just a new business chapter, but a powerful cultural moment—bringing together two purpose-driven brands ready to shape the next era of beauty.
