E.l.f. Beauty to Acquire Hailey Bieber’s Rhode Skincare Brand in $1 Billion Deal

E.l.f. Beauty announced Wednesday it will acquire Hailey Bieber’s skincare brand Rhode in a deal valued at up to $1 billion, marking the cosmetics company’s largest acquisition to date and a strategic move to grow its presence in the skincare sector.

The transaction includes $800 million in cash and stock, with an additional $200 million contingent on performance over the next three years. The deal is expected to close later this year during the second quarter of E.l.f.’s fiscal 2026.

Founded in 2022, Rhode has quickly grown into a significant player in the skincare market, generating $212 million in net sales in just under three years through a limited product range and a direct-to-consumer model.

“I’ve been in the consumer space 34 years, and I’ve been blown away by this brand’s trajectory,” said E.l.f. CEO Tarang Amin. “They’ve disrupted the industry with only 10 products and no retail footprint.”

Hailey Bieber will remain with the company post-acquisition as Chief Creative Officer and Head of Innovation, continuing to lead Rhode’s branding, product development, and marketing strategy.

“From day one, my vision for Rhode has been to deliver essential skincare and hybrid makeup for everyday use,” Bieber said in a statement. “This partnership allows us to reach more people around the world with even more innovation.”

E.l.f. shares fell 4% in after-hours trading following the announcement, despite reporting fiscal fourth-quarter results that exceeded analyst expectations. The company posted adjusted earnings of 78 cents per share and revenue of $333 million, topping estimates of 72 cents and $328 million, respectively.

The acquisition comes as E.l.f. faces rising costs tied to tariffs on Chinese imports, which account for about 75% of its production. The company said it will raise product prices by $1 starting August 1 to offset the impact of the 30% U.S. import duty. Due to uncertainty over future tariff adjustments under the Trump administration, E.l.f. declined to issue financial guidance for fiscal 2026.

Rhode is set to enter retail for the first time later this year, with launches planned at Sephora locations in North America and the U.K. Under Bieber’s leadership, Rhode became the No. 1 skincare brand in earned media value in 2024, with year-over-year growth of 367%.

The acquisition builds on E.l.f.’s skincare expansion following its $355 million purchase of Naturium in 2023. Rhode’s higher price point, averaging in the high $20s, complements E.l.f.’s entry-level cosmetic offerings and is expected to attract a more affluent consumer base.

“This brings a new audience to our brand family, while keeping the same approach in digital engagement,” Amin said.

Despite macroeconomic uncertainty and tariff-related pressure, the company is betting that demand for premium skincare will remain strong.

“This was a strategic acquisition in a highly competitive environment,” Amin added. “We believe Rhode has the potential to scale further, globally and creatively, with E.l.f.’s support.”