Hailey Bieber’s innovative cosmetics brand Rhode, which has been making waves in the beauty industry for just three years, has officially been acquired by E.l.f. Beauty in a landmark deal valued at $1 billion. This acquisition was publicly announced on Wednesday, marking a significant milestone for both brands.
In a statement, E.l.f. Beauty’s Chairman and CEO Tarang Amin emphasized the alignment between the two companies, stating, “E.l.f. Beauty found a like-minded disruptor in Rhode.” He highlighted how the acquisition allows for diversification within their portfolio, positioning Rhode as a rapidly growing brand that makes prestige beauty products accessible to a wider audience. Amin expressed excitement about Rhode’s potential to break traditional beauty barriers, fully aligning with E.l.f. Beauty’s mission to innovate and reshape the beauty landscape.
The financial specifics of the acquisition reveal that E.l.f. Beauty will be acquiring Rhode for 0 million, which comprises $600 million in cash and $200 million in newly issued shares. Additionally, there is a potential earnout consideration of $200 million contingent upon Rhode’s performance over the subsequent three years, further incentivizing robust growth and innovation.
Since its inception in 2022, Rhode has rapidly ascended the ranks to become one of the most talked-about skincare brands within the industry. Impressively, the company reported $212 million in net sales over the past year while doubling its consumer base, showcasing its profitability and market appeal. Rhode now joins the ranks of other celebrity-backed brands such as Keys Soulcare by Alicia Keys, Naturium, and Well People, enriching E.l.f. Beauty’s diverse portfolio.
With this acquisition, Hailey Bieber will not only retain her position as the brand’s founder but will also take on additional responsibilities as Chief Creative Officer and Head of Innovation. Furthermore, she will serve as a Strategic Advisor to the combined companies, ensuring her vision continues to drive the brand’s direction.
Bieber expressed her enthusiasm for expanding Rhode’s reach, stating, “We can’t wait to bring Rhode to more faces, places, and spaces. From day one, my vision for Rhode has been to create essential skincare and hybrid makeup that can be incorporated into everyday routines.” She sees this partnership with E.l.f. Beauty as a pivotal opportunity to enhance and speed up Rhode’s growth, allowing the brand to introduce more innovative products and expand its global distribution.
This acquisition news follows closely on the heels of Sephora’s announcement that it would begin offering Rhode products across its retail locations in the U.S., U.K., and Canada. Speculation about a potential sale had been circulating since April, with reports indicating that Bieber had engaged investment bankers at JPMorgan Chase and Moelis to explore opportunities for a buyer.
The co-founders of Rhode, Michael D. Ratner and Lauren Ratner, will remain in their executive positions, continuing to guide the brand from their offices in Los Angeles. Lauren Ratner also holds the title of President and Chief Brand Officer, playing a crucial role in the brand’s ongoing success.
Bieber concluded her remarks by saying, “As I continue as Founder and step into an expanded role of Chief Creative Officer and Head of Innovation, I look forward to leading the brand into this exciting new chapter of possibilities alongside my Co-Founders Michael D. Ratner and Lauren Ratner, who have been instrumental in bringing my vision to life from the very beginning.”
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