E.L.F. Beauty Announces Definitive Agreement To Acquire Hailey Bieber's Rhode For $1 Billion

American Cosmetics brand E.L.F. Beauty has announced that it has signed a definitive agreement to acquire Rhode, the American beauty brand founded by Hailey Bieber for USD 1 billion.

The deal, comprises of USD 800 million in cash and stock at closing and a potential USD 200 million earnout based on Rhode's growth over the next three years. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second quarter of Fiscal 2026.

Bieber will continue her role as Founder and additionally serve as Rhode's Chief Creative Officer and Head of Innovation, overseeing creative, product innovation and marketing. She will also act as a Strategic Advisor to the combined companies. The brand will continue to operate from its Los Angeles headquarters under the additional leadership of co-founders Michael D. Ratner and Lauren Ratner, and CEO Nick Vlahos.

'E.L.F. Beauty found a like-minded disruptor in Rhode. 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,' E.L.F. Chairman and CEO Tarang Amin said in a press release.

'We can't wait to bring Rhode to more faces, places, and spaces. From day one, my vision for Rhode has been to make essential skin care and hybrid makeup you can use every day. 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. 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 helped bring my vision to life from the start,' said Bieber.

'The last 5 years building Rhode has been one of the greatest experiences of my life. To our entire Rhode community - thank you for your endless love and support for the brand. We see every video, comment and message and it means so much to us. We can't wait for you to see what we have coming!,' co-founder Lauren Ratner added.

Since its launch in 2022, Rhode has has become a standout in the competitive beauty landscape and has generated USD 212 million in net sales in the year ending March 31, 2025. For E.L.F. Beauty, the acquisition sets the stage for transformative global expansion, disruption and product innovation, leveraging Rhode's upcoming retail expansion, with plans to launch in Sephora stores across the U.S., Canada, and the U.K. by the end of 2025.

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