On May 28, 2025, e.l.f. Beauty announced its $1 billion acquisition of Hailey Bieber’s Rhode skincare brand, marking its largest deal ever to expand into premium beauty markets.
The transaction consists of $800 million in cash and stock and a potential $200 million earnout based on Rhode’s three-year performance. It is expected to close by September 2025. Bieber will continue as chief creative officer, overseeing innovation and marketing.
According to Forbes, launched in 2022, Rhode generated $212 million in net sales by March 2025 with just ten products, including the viral Peptide Lip Treatments. Its direct-to-consumer model and a remarkable 367% year-over-year growth in earned media value made it the most recognised skincare brand in 2024, as reported by People. Meanwhile, e.l.f. Beauty, known for its budget-friendly cosmetics with an average price of $6.50, is looking to attract higher-income consumers by offering products at Rhode’s average price point of $28.
CEO Tarang Amin praised Rhode’s disruption, noting, “They’ve gone from zero to $212 million in three years.” The deal follows e.l.f.’s $355 million Naturium acquisition in 2023, which doubled its skincare presence.
Hailey Bieber’s Skin Care Firm Rhode To Be Acquired By E.L.F. Beauty In $1 Billion Dealhttps://t.co/VGQ56LcE3B pic.twitter.com/cSkCIqQg8J
— Forbes (@Forbes) May 28, 2025Rhode’s Growth and Expansion
Rhode’s carefully curated product lineup, which includes Glazing Milk and Pocket Blush, has captured Gen Z’s and millennials’ attention, further boosted by Justin Bieber’s impressive 55 million Instagram followers. A partnership with Sephora is set to launch in fall 2025, expanding Rhode’s presence to stores across the US, Canada, and the UK, according to Glamour. Bieber stated, “This partnership elevates our ability to reach more of our community globally,” as reported in an e.l.f. Beauty press release. Additionally, co-founders Michael and Lauren Ratner will join e.l.f., while CEO Nick Vlahos will continue in his role.
Hailey Bieber’s Rhode skincare brand has been acquired by elf Beauty for $1 BILLION. pic.twitter.com/zWu0GXnLPL
— Pop Base (@PopBase) May 28, 2025The acquisition occurs during economic uncertainty, as e.l.f. is dealing with tariffs on Chinese imports—75% of its products are made in China. The company is funding $600 million of the deal through high-interest debt. Following the announcement, e.l.f.’s stock fell by 4% due to concerns over these tariffs.
Beauty analyst Dr. Sarah Kim from NYU commented, “e.l.f.’s decision to invest in Rhode’s premium appeal is bold, but the risks posed by tariffs and economic slowdowns cannot be overlooked.”
The Rhode acquisition positions e.l.f. Beauty will dominate premium skincare, leveraging Bieber’s influence and Rhode’s viral success.
