e.l.f. Beauty expands portfolio with acquisition of Rhode brand in USD 1B deal
The acquisition strengthens e.l.f.’s presence in prestige skincare, positioning the company to reach a more affluent consumer base.
USA – e.l.f Beauty, an American cosmetics brand, has acquired Rhode, the rapidly growing lifestyle beauty brand founded by Hailey Bieber, in a USD 1 billion deal, expanding its portfolio.
The acquisition marks a strategic move that unites two brands committed to innovation and market disruption, laying a strong foundation for accelerated global expansion.
According to the company, the USD 1 billion deal includes an upfront payment of USD 800 million in a mix of cash and stock, subject to standard closing adjustments.
An additional USD 200 million may be paid out as an earnout, based on Rhode’s performance and growth over the next three years.
Tarang Amin, Chairman and CEO at e.l.f., stated, “Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible.”
“We are excited by Rhode’s ability to break beauty barriers, fully aligning with e.l.f. Beauty’s vision is to create a different kind of company. Rhode is a beautiful brand that we believe is ready for rocketship growth.”
As part of the agreement, Hailey Bieber will retain her role as Founder, while expanding her influence as Chief Creative Officer and Head of Innovation.
Hailey will oversee product development, creative direction, and brand strategy while serving as a Strategic Advisor to e.l.f. Beauty.
Rhode is also set to broaden its distribution, making its debut in Sephora stores across North America and the U.K. before the year’s end.
Since its launch in 2022, Rhode has garnered a devoted following through its direct-to-consumer model and innovative product offerings.
The brand reported USD 212 million in net sales in the 12 months ending March 31, 2025, demonstrating its rapid growth and strong consumer appeal.
The acquisition strengthens e.l.f.’s presence in prestige skincare, positioning the company to reach a more affluent consumer base while leveraging Rhode’s cult-like following.
The deal is expected to close in the second quarter of fiscal 2026, solidifying e.l.f. Beauty’s standing as a dominant force in skincare innovation and global expansion.
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