Hailey Bieber sells her beauty brand for $1B

Make-up and skincare brand Rhode, founded by Hailey Bieber, is to be acquired by US company e.l.f. Beauty for around US$1 billion. This strategic acquisition enables the affordable cosmetics giant to penetrate the more upscale market, while partnering with an influential celebrity among Generation Z and millennials.

The buyout includes an initial payment of $800 million, split between cash and shares, with the possibility of a further $200 million depending on the brand’s future performance. Completion of the transaction is scheduled for the second quarter of fiscal 2026.

Known for its low-priced products sold in places like Walmart, Target and Shoppers Drug Mart, e.l.f. (acronym for eyes, lips, face) is looking to expand its offering into more prestigious products. The acquisition of Rhode thus marks a major strategic shift for the company, which had already bought the Naturium skincare brand for $355 million in 2023.

Launched in 2022, Rhode quickly made a name for itself with products that went viral on TikTok, such as its $18 peptide lip treatment. In one year, the brand generated some $212 million in revenues, solely via its official website and ephemeral boutiques.

Hailey Bieber, 28, will remain deeply involved in Rhode’s development. She announced on Instagram that she would become the brand’s Chief Creative Officer and Head of Innovation, in addition to acting as strategic advisor to e.l.f. Beauty.

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