Hailey Bieber Sells Rhode Beauty Brand to E.l.f. in $1 Billion Deal

Model and entrepreneur Hailey Bieber is selling her skincare and makeup brand, Rhode, to E.l.f. Beauty in a blockbuster deal worth up to $1 billion, the two companies confirmed on Wednesday.

The deal includes $800 million in cash and stock, with an additional $200 million earnout based on Rhode’s future sales performance. The acquisition is expected to close later this year, pending regulatory approvals.

Founded in 2022, Rhode has quickly grown into a major digital beauty player, driven by social media popularity and viral demand for its peptide lip treatments and blush products. The company reported more than $200 million in net sales over the 12-month period ending in March, despite having a product line of just a handful of items.

E.l.f. Beauty, known for its affordable makeup products and rapid digital growth, said the purchase aligns with its ambition to expand deeper into the premium skincare space.

“This is a beautiful brand that we believe is ready for rocketship growth,” E.l.f. said in its official announcement.

Bieber, 28, who co-founded the brand and named it after her middle name, will stay on as Rhode’s Chief Creative Officer following the acquisition. Other founding partners and executives are expected to remain with the company.

“Our partnership with E.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally,” Bieber said in a statement.

Rhode products, which are currently sold direct-to-consumer, are slated to launch in Sephora stores in the United States and the United Kingdom later this year.

A Trend Among Celebrity Entrepreneurs

The Rhode acquisition places Bieber in the ranks of other celebrity beauty founders who have built successful brands from their personal platforms. Rihanna’s Fenty Beauty, Kylie Jenner’s Kylie Cosmetics, and Selena Gomez’s Rare Beauty have all achieved global recognition and financial success.

In 2023 alone, celebrity-led beauty brands generated more than $1 billion in sales, according to data from Nielsen IQ. Analysts attribute the growth to strong social media engagement and the ability of celebrities to convert personal influence into brand loyalty.

“In my wildest dreams, it's already gone beyond what I would've hoped for,” Bieber told Vogue in a recent interview, referring to Rhode’s unexpected commercial success.

Personal Milestones and Business Growth

Bieber, who is married to pop star Justin Bieber and welcomed their first child last year, is part of a prominent Hollywood family. She is the daughter of actor Stephen Baldwin and niece to Alec, William, and Daniel Baldwin.

Rhode’s rise has been closely followed online, where its minimalist branding and accessible pricing have made it a favorite among Gen Z and Millennial consumers. The brand’s TikTok-friendly products have consistently sold out and fueled strong earned media value without reliance on traditional advertising.

E.l.f.’s Strategic Expansion

The acquisition is E.l.f. Beauty’s largest to date and follows its 2023 purchase of skincare brand Naturium for $355 million. While E.l.f. maintains a core focus on budget cosmetics, with entry price points around $6, the company has increasingly moved into higher-end skincare and broader consumer demographics.

Rhode’s average product price, in the high $20 range, marks a step into more premium territory for E.l.f., which aims to diversify its portfolio and customer base.