The beauty and skincare brand founded by Hailey Bieber, Rhode Island, has been acquired by elf Beauty for $1 billion, in one of the largest deals in the beauty industry in recent years. The deal includes $800 million in cash and stock, as well as another $200 million in related investments that will help the brand perform over the next three years.
Bieber will continue her role as founder, but will now expand her involvement as artistic and innovation director, overseeing product development, marketing campaigns and new strategies for Rhode. She will also serve as a strategic advisor to both Rhode and elf Beauty.
“It was scary to find a new home for Rhode,” Bieber said, “but once I met the elf team, I immediately felt like I belonged in their community, I felt the same connection as in our Rhode community.”
elf Beauty CEO Tarang Amin called the collaboration a "perfect marriage," highlighting Rhode's rapid success: from 0 to $212 million in net sales in less than three years, with just 10 products and operating exclusively online.
“Hailey is not just a famous face. She is a founder with vision and strong strategic instincts,” Amin said. “She has built this brand with authenticity and real impact.”
Why is this agreement important?
Rhode was launched in 2022 and has grown rapidly thanks to attractive product design, marketing, and Hailey Bieber's influence.
In 2024, the brand generated $400 million through social media alone, surpassing the average rates set by other businesses in the market. Last week, Rhode also debuted at Sephora, expanding its presence beyond online sales.
At a time when large M&A deals have become rare due to economic uncertainty, the Rhode deal signals a return to confidence in young brands with sustainable value. Industry experts see it as a model for the success of other celebrity-founded brands, such as Rare Beauty (Selena Gomez), Makeup by Mario, One/Size and Glossier.
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