Cosmetics company e.l.f. Beauty is acquiring Hailey Bieber’s skincare brand rhode in a $1 billion transaction, expanding into the prestige beauty segment. The deal includes $800 million payable at closing—$600 million in cash and $200 million in newly issued e.l.f. Beauty common stock—with an additional potential $200 million earnout tied to the brand’s future growth over three years.

Founded by Bieber in 2022, rhode generated $212 million in net sales for the 12 months ending March 31, 2025, and has more than doubled its consumer base over the past year. Currently available only through direct-to-consumer channels, rhode plans to launch its first physical retail partnership with Sephora in North America and the UK by year-end.

Bieber, 28, will continue as founder while taking on expanded roles as Chief Creative Officer and Head of Innovation, overseeing creative direction, product development, and marketing. She will also serve as a Strategic Advisor to the combined companies.

“We can’t wait to bring rhode to more faces, places, and spaces,” Bieber said in a press release. “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 co-founders Michael D. Ratner and Lauren Ratner will remain with the brand, which will continue operating from its Los Angeles office.

Portfolio Diversification

The acquisition represents e.l.f. Beauty’s continued portfolio diversification. The Oakland-based company, which started in 2004 as an online-only affordable makeup brand, has been expanding ever since. It launched e.l.f. SKIN and acquiring Naturium in 2023.

“e.l.f. Beauty found a like-minded disruptor in rhode,” stated e.l.f. Chairman and CEO Tarang Amin. “Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible.”

e.l.f. Beauty reported a 28% increase in net global sales to $1.3 billion for its fiscal year ending March 2025. The company’s brand portfolio now includes e.l.f. Cosmetics, e.l.f. SKIN, Keys Soulcare, Well People, Naturium, and soon, rhode.

rhode has established itself with a minimalist “one of everything really good” philosophy that contrasts with more elaborate beauty routines. The brand has become particularly popular with younger consumers attracted to Bieber’s fresh-faced aesthetic, positioning itself as an alternative to heavily made-up looks.

The transaction is expected to close in the second quarter of Fiscal 2026, subject to customary closing conditions and regulatory approvals.