California-based Elf Beauty Inc. has announced the acquisition of Hailey Bieber’s skincare brand Rhode in a $1 billion deal combining cash and stock, marking Elf’s biggest acquisition to date. Rhode, known for its viral success and Gen Z following, will continue to be led by Bieber, who will serve as founder and strategic advisor.
California-based cosmetics company Elf Beauty Inc., a leader in affordable beauty products across the US, has announced its largest acquisition yet — the purchase of Rhode, the skincare and beauty brand launched by American model and entrepreneur Hailey Bieber, for $1 billion.
Founded in 2022, Rhode quickly gained traction among Gen Z and millennials through viral TikTok campaigns and direct-to-consumer sales of trendy products like the peptide lip treatment. Its growth has been largely attributed to Bieber’s strong social media influence and a focused digital marketing approach. The brand reported $212 million in sales for the fiscal year ending March 31.
According to a statement issued on May 29, Elf Beauty will pay $800 million in a combination of cash and stock to Rhode’s shareholders, with an additional $200 million earnout tied to performance metrics. Despite the ownership change, Hailey Bieber will continue her leadership role as founder and also assume the position of strategic advisor for Rhode’s future development.
Elf Beauty, known for its budget-friendly products starting at just $2 and retailing through giants like Walmart, Ulta Beauty, and Target, views this acquisition as a strategic move to deepen its portfolio with a prestige-aligned yet accessible brand. CEO Tarang Amin described Rhode as “ready for rocketship growth” and said the partnership would enhance Elf’s global distribution reach.
Rhode plans to launch in Sephora stores across the US and Canada this fall, followed by expansion into the UK. With this acquisition, Elf aims to bridge the gap between prestige and affordability in the global skincare market while leveraging Bieber’s brand power.
This acquisition follows Elf Beauty’s $355 million purchase of Natrium in 2023, signaling a broader push into skincare and premium offerings within its growing brand empire.
