E.l.f. Beauty’s $1 billion acquisition of Hailey Bieber’s Rhode Skincare cements the brand’s dominance in prestige beauty and accelerates its retail expansion worldwide.
At a Glance
- E.l.f. Beauty acquires Hailey Bieber’s Rhode Skincare for $1 billion, with $800M upfront and $200M performance-based
- Rhode grew to $212M in sales in three years with just 10 products
- Bieber will remain as Chief Creative Officer and Head of Innovation
- Rhode will expand into Sephora stores in the U.S., Canada, and the UK
- E.l.f. to raise global prices by $1 starting August 1 due to tariffs
Billion-Dollar Bet on Prestige Growth
E.l.f. Beauty has acquired Rhode Skincare in a deal valued at $1 billion, marking one of the most high-profile beauty acquisitions of 2025. The transaction includes an $800 million upfront payment in cash and stock, with an additional $200 million tied to performance milestones. The acquisition underscores E.l.f.’s push into the prestige beauty segment following its earlier purchase of Naturium and complements the company’s soaring fiscal performance—annual sales rose 28% to $1.3 billion.
Watch a report: E.l.f. Acquires Rhode Skincare for $1B.
Hailey Bieber will continue to guide the brand’s creative direction and product innovation, while Rhode’s leadership team remains intact at their Los Angeles headquarters. The acquisition structure includes $600 million in debt and $200 million in newly issued shares, signaling confidence in Rhode’s long-term value. E.l.f. executives emphasized this deal aligns with their disciplined M&A strategy, calling it a “win-win force multiplier.”
Rhode’s Meteoric Rise
Launched in 2022, Rhode Skincare quickly built a cult following with minimalist skincare offerings that embodied Bieber’s signature “glazed donut” aesthetic. With just 10 core products, the brand posted $212 million in sales by March 2025, largely through direct-to-consumer drops that regularly sell out. Its rapid ascent has positioned it as a breakout success story in celebrity-led beauty, outperforming peers on digital engagement and consumer loyalty.
Rhode’s appeal lies in its ability to merge lifestyle branding with clinically driven formulas—a combination that has resonated with younger consumers. “Rhode’s aesthetic and lifestyle approach to beauty has driven success and scale across cosmetics, skin care and accessories,” said E.l.f. CEO Tarang Amin. Bieber’s continued involvement is expected to preserve this distinct identity while accelerating growth.
Retail Push and Market Synergies
E.l.f. plans to scale Rhode’s availability dramatically by launching the brand in Sephora stores across North America and the UK by year’s end. This marks a pivotal shift from its DTC-only model, opening up brick-and-mortar channels for wider consumer access. Coupled with an expanded product range and aggressive marketing, the strategy seeks to deepen Rhode’s market penetration and capitalize on its strong brand equity.
E.l.f. will also raise its product prices globally by $1 starting August 1, citing increased tariffs. Despite the hike, this remains only the third increase in the company’s 21-year history, reinforcing its value proposition. “We act only when we find a win-win,” Amin added, reflecting the company’s selective acquisition philosophy.
This billion-dollar deal sets a new benchmark for celebrity beauty brands and signals that Rhode, with its star-powered simplicity, is now poised for mainstream retail dominance.
