E.l.f. Beauty Acquires Rhode in $1 Billion Deal

E.l.f. Beauty has signed a definitive agreement to acquire Rhode, the breakout beauty brand founded by Hailey Bieber, in a deal worth up to $1 billion. The acquisition signals a major step into prestige beauty for E.l.f. Beauty, which continues to diversify its portfolio through high-growth, culturally resonant brands.

The agreement includes $800 million payable at closing in a mix of cash and stock, alongside a potential $200 million earnout tied to Rhode’s performance over the next three years.

“E.l.f. Beauty found a like-minded disruptor in Rhode,” said E.l.f. Beauty Chairman and CEO Tarang Amin. “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 to create a different kind of company. Rhode is a beautiful brand that we believe is ready for rocketship growth.”

Launched in 2022, Rhode has quickly earned a cult following for its minimalist, efficacious skincare designed for everyday use. Bieber created the brand to fill a perceived gap in the market: simplified, high-performance products that prioritise skin health without the complexity of multi-step routines or exorbitant price points. “We can’t wait to bring Rhode to more faces, places and spaces,” said Bieber. “Just three years into this journey, 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.”

Rhode has more than doubled its consumer base in the past year and generated $212 million in net sales in the 12 months ending 31 March 2025. With a strong direct-to-consumer model and a new retail partnership with Sephora set to launch in North America and the UK, the brand is primed for significant expansion.

As part of the acquisition, Bieber will remain founder and take on the expanded role of chief creative officer and head of innovation, while also serving as a strategic advisor to the combined companies. Co-founders Michael D. Ratner and Lauren Ratner, who helped shape Rhode’s identity and growth, will continue leading the brand alongside CEO Nick Vlahos from its Los Angeles base.

The deal follows E.l.f. Beauty’s 2023 acquisition of Naturium, which doubled its skincare presence, and marks its continued push into premium beauty retail. Founded in 2004 to democratise access to beauty, E.l.f. Beauty leads the US market in units sold and ranks second in overall dollar share.

With Rhode soon to be under its umbrella, E.l.f. Beauty is quietly asserting its position as a new kind of beauty house, one that champions diversity in both offering and audience.