Beauty Billion: e.l.f. Beauty’s Acquisition of Rhode Marks a New Era in Skincare

Photo Disclosure Rhode

In a groundbreaking move that has sent ripples through the beauty industry, e.l.f. Beauty has announced its acquisition of Hailey Bieber’s skincare brand, Rhode, in a deal valued at $1 billion. This strategic partnership not only signifies e.l.f.’s expansion into the prestige beauty market but also underscores the growing influence of celebrity-founded brands in the skincare sector.

“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,” Bieber says in the acquisition announcement.

Launched in 2022, Rhode quickly garnered a dedicated following, thanks to its minimalist aesthetic and effective products like the Peptide Lip Treatment and Glazing Milk. The brand’s success is attributed to Bieber’s vision of creating essential skincare and hybrid makeup products that cater to everyday needs.

“From day one, my vision for Rhode has been to make essential skincare and hybrid makeup you can use every day,” Bieber stated.

The acquisition deal comprises $800 million in cash and stock, with an additional $200 million contingent on Rhode achieving specific performance milestones over the next three years. This move allows e.l.f. Beauty to diversify its portfolio, which already includes brands like Naturium and Keys Soulcare, and to tap into Rhode’s strong Gen Z and millennial customer base.

Photo Disclosure Rhode

Bieber will continue to play a pivotal role in the brand’s future, serving as Founder, Chief Creative Officer, and Head of Innovation. Her continued involvement ensures that Rhode’s original ethos and commitment to quality remain intact as the brand scales new heights.

With plans to expand Rhode’s presence in Sephora stores across North America and the UK, this acquisition marks a significant step in e.l.f. Beauty’s mission to make high-quality, accessible beauty products available to a broader audience.

As the beauty industry continues to evolve, the e.l.f.-Rhode partnership exemplifies how strategic collaborations can redefine market dynamics and set new standards for innovation and inclusivity.