E.L.F. Beauty acquires Hailey Bieber’s Rhode skin care in $1 billion deal
Mass-market cosmetics company E.L.F. Beauty, known for its internet-viral dupes and affordability, has acquired American model Hailey Bieber’s Rhode skin-care brand in a $1 billion deal, the company announced Wednesday.
The agreement includes $800 million in cash and stock to be paid at closing, plus a “potential earnout consideration of $200 million based on the future growth of the brand” over three years, E.L.F. said in a release. The deal is expected to close in the second quarter of fiscal 2026.
On Wednesday, the Oakland, California-based E.L.F. reported fiscal fourth-quarter earnings of $28.3 million and revenue of $332.6 million. For the year, the company reported profit of $112.1 million and revenue of $1.31 billion.
Bieber, 28, rose to fame as a model in the mid-2010s and was further propelled into the spotlight when she started dating singer Justin Bieber, whom she married in 2018. Her father is actor Stephen Baldwin, the brother of actor Alec Baldwin.
Bieber started Rhode in 2022, using her profile as a star socialite to promote products on YouTube vlogs that portray a glamorous lifestyle of hanging out with A-list celebrities and getting ready for high-end fashion events.
The Los Angeles-based company is named after Bieber: Rhode is her middle name.
“I always had big dreams for the company, and the most important thing to me is to keep bringing Rhode to more spaces, places, and faces globally,” Bieber said in a statement Wednesday.
She added that she will “step into an even bigger role” as chief creative officer and head of innovation at Rhode, in addition to joining E.L.F. Beauty as a strategic adviser.
Celebrity skin-care and beauty brands have crowded the market in recent years. Beyoncé, Kylie Jenner, Kim Kardashian, Jessica Alba, Jennifer Aniston, Serena Williams, Scarlett Johansson, Drew Barrymore, Alicia Keys, Selena Gomez and Ariana Grande are among the many celebrities to launch their own lines.
A 2024 analysis by NielsenIQ that tracked 43 celebrity beauty brands found that they collectively surpassed $1 billion in sales for the first time in 2023.
“The sales growth of celebrity Beauty brands surpassed growth of the total Beauty category, up +57.8% while total Beauty is up 11.1% during this time,” it said.