Hailey bieber sells makeup brand rhode to elf beauty in $1b deal

Model Hailey Bieber’s makeup and skincare brand, Rhode, is being snapped up by Elf Beauty for about $1 billion, giving the budget cosmetic retailer access to a celebrity-endorsed product

line that has become hugely popular among Gen Z and millennials. Elf said on Wednesday it would pay Rhode shareholders $800 million in a combination of cash and stock and an additional

potential earnout consideration of $200 million subject to certain performance-related conditions. Last month, Reuters reported that Bieber was exploring a sale of the brand, which could be

worth more than $1 billion. _RELATED:_ _I tried $104 worth of e.l.f. products to find what’s worth it_ For Elf, the deal would mark a shift in strategy and expand into the prestige beauty

market as the company faces weak demand from mass market customers who are being pressured by persistent high inflation. EXPLORE MORE “The Rhode deal is a bold move for e.l.f. into premium

beauty at a time when the prestige side of the industry has lost some of its momentum as a result of consumers buying less or trading down,” said Sky Canaves, eMarketer analyst. _RELATED:_

_I reviewed the new e.l.f. SKIN dew drops: The full rundown_ However, Rhode has bucked this trend, Canaves added, with a strong Gen Z following and significant buzz around its product

launches, positioning it well for a strong expansion. Elf — short for eyes, lips and face — offers products priced as low as $2 at US retailers including Walmart, Ulta Beauty and Target. On

the other hand, Rhode — which launched in 2022 and gained popularity with TikTok viral products such as its $18 “peptide lip treatments” — sells exclusively through its own website or pop-up

stores, relying heavily on Hailey Bieber’s social media influence. “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,” Bieber said. _RELATED:_ _e.l.f. vs. Skincuetricals review: Which C E Ferulic serum is best?_ The company raked in about

$212 million in sales for the year ended March 31 and is planning to start selling at Sephora stores across the US and Canada coming this fall, followed by the UK. “Rhode further diversifies

our portfolio with a fast-growing brand that makes the best of prestige accessible,” Elf CEO Tarang Amin said in a statement. Earlier this year, Elf’s shares cratered 20% after the company

cut its annual forecasts and warned of weakening demand. Elf’s deal with Rhode would mark its biggest acquisition to date and follows its $355 million acquisition of skincare company Natrium

in 2023. Bieber will continue her role as founder and will also act as a “strategic advisor” after the deal closes. The transaction is expected to close in the second quarter of fiscal

2026. Separately, Elf on Wednesday refrained from providing a fiscal 2026 forecast due to uncertainty surrounding import tariffs despite beating Wall Street expectations for fourth-quarter

sales. _RELATED:_ _e.l.f. Cosmetics Bronzing Drops — we’re obsessed_ The company, which sources about 75% of its products from China, down from 100% back in 2019, said last week it would

raise prices by $1 to combat tariff pressure.