e.l.f. Beauty Buys Rhode for $1B

The beauty landscape has just shifted in a big way. e.l.f. Beauty, a pioneer in affordable, accessible cosmetics, has announced the headline-grabbing acquisition of Rhode, the skincare brand fronted by Hailey Bieber. Valued at $1 billion, this deal signals one of the most significant moves in recent beauty industry news. Here’s what you need to know about this Rhode acquisition, why it matters, and what it could mean for the future of both brands.

e.l.f. Cosmetics, founded in 2004, has earned a global reputation by “democratising” beauty and prioritising inclusivity, clean ingredients, and innovation. Its mission centres on making quality beauty accessible to every eye, lip, and face. The brand’s disruptive attitude has seen it rise to become the top brand in unit sales across the US and a major influencer on beauty trends worldwide.

Rhode, meanwhile, burst onto the skincare scene in 2022, masterminded by cultural tastemaker Hailey Bieber. The brand quickly found cult status for its minimalist, skin-first approach, focusing on essential, multitasking products built on Bieber’s “one of everything really good” philosophy. Within three years, Rhode more than doubled its customer base and amassed $212 million in net sales over just twelve months, becoming a leader in earned media value for skincare in 2024.

This acquisition underscores a merging of disruptive energies in the beauty sector, setting the stage for far-reaching implications.

Acquisition details

On 28th May 2025, e.l.f. Beauty (NYSE: ELF) revealed it had signed a definitive agreement to acquire Rhode for a sum of $1 billion (official press release). The deal includes $800 million in cash and stock upon closing and the potential for an additional $200 million earnout over three years, based on Rhode’s performance. The up-front investment is funded through a mix of debt financing and e.l.f. Beauty shares, with some shares subject to a lock-up period.

Industry observers have described this move as bold but logical. Rhode’s annual sales represent a strong base, and the alliance brings complementary strengths to the fore. The deal is expected to close in the second quarter of fiscal 2026, pending regulatory approval and standard closing conditions.

Why e.l.f. Beauty is making this move

For e.l.f. Beauty, the Rhode acquisition is part of a clear expansion strategy. With roots in the “masstige” space (mass-market meets prestige), e.l.f. has consistently looked for ways to disrupt the norm and stretch its portfolio. Adding Rhode helps e.l.f. push further into the prestige beauty market and secure new retail partnerships, most notably with Sephora in North America and the UK.

This move also follows e.l.f.’s acquisition of Naturium in 2023, which doubled its skincare footprint and diversified its business. Bringing Rhode into the fold amplifies e.l.f.’s ambitions, allowing it to tap into Rhode’s influencer-driven audience and further shape culture through innovative product launches and collaborations.

“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,” said Tarang Amin, Chairman and CEO of e.l.f. Beauty.

Rhode remains independent

A key point of interest for fans of both brands is that Rhode will continue to operate independently as part of the e.l.f. Beauty portfolio. Hailey Bieber remains at the helm, taking on an expanded role as Founder, Chief Creative Officer, and Head of Innovation. Along with her co-founders and CEO Nick Vlahos, Bieber’s team will lead Rhode from its Los Angeles base, nurturing its entrepreneurial spirit and creative edge.

This structure supports Rhode’s ongoing mission—to create intentional skincare and hybrid makeup, driven by efficacy and inclusivity, with a strong focus on community engagement. The business will maintain its unique voice while benefiting from e.l.f.’s distribution, resources, and know-how.

Driving innovation and growth

Rhode’s rise has been powered by bold digital marketing, immersive real-world campaigns, and a relentless focus on product efficacy. Now, partnering with e.l.f. unlocks new possibilities for innovation and growth. With plans to expand into more retail spaces and accelerate global reach, both brands stand to benefit from knowledge-sharing and combined R&D.

Hailey Bieber’s influence in the beauty and cultural landscape is expected to help scale the brand’s direct-to-consumer channels and fuel strategies for breaking into new markets. Rhode’s status as the top skincare brand in Earned Media Value in 2024 will only be enhanced by the operational might of e.l.f. Beauty.

e.l.f. will also profit from Rhode’s high-performing, prestige-focused formulations and its magnetic social presence, giving the parent company fresh momentum.

Looking ahead

The acquisition of Rhode by e.l.f. Beauty is not just another headline in beauty industry news. This union marks a signal change in how brands blend prestige with accessibility, digital innovation with community focus, and independent spirit with global scale.

Key takeaways for investors and beauty watchers:

• e.l.f. Beauty’s $1B acquisition of Rhode deepens its portfolio and capabilities.
• Rhode will continue as a standalone brand, with Bieber leading innovation.
• Together, the brands are set to drive fresh growth and challenge industry norms.
• The move solidifies e.l.f.’s leadership role and forward-thinking approach.

As the deal closes and joint strategies unfold, this is one beauty story to keep on your radar.

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