Hailey Bieber’s beauty label, rhode, has been acquired by budget cosmetics giant e.l.f. Beauty for a staggering US$1 billion (approximately A$1.56 billion), marking e.l.f.’s largest purchase to date, surpassing its earlier acquisition of Naturium for US$355 million (around A$552 million) in 2023.
Established in 2022, rhode generated net sales of US$212 million (approximately A$330 million) in its last fiscal year, which concluded in March. This year, rhode products are set to become available in Sephora stores across North America and the UK.
Following the acquisition, Bieber will continue her role as the brand’s chief creative officer and head of innovation, a position she has held since the brand’s inception. E.l.f. highlighted rhode’s strong social media presence and its dedicated fanbase, noting that customers frequently queue for hours at pop-up events, with products often selling out online.
According to e.l.f. CEO Tarang Amin, one of the appealing aspects of rhode is its concise product lineup, featuring only ten offerings across skincare, cosmetics, and accessories.
This significant acquisition arrives at a challenging time for e.l.f., as the company grapples with the impact of heightened tariffs on imported goods from China, where 75% of its production is based. The tariffs, which have reached 55% due to an ongoing trade war, have led the company to refrain from issuing financial guidance for the current fiscal year.
Despite these challenges, e.l.f. remains committed to its production strategy, believing that its China-based supply chain offers a competitive edge that has been developed over the last two decades.
The acquisition deal consists of US$800 million (A$1.2 billion) in cash and stock, with an additional potential payout of US$200 million (A$311 million) based on rhode’s performance over the next three years. The deal is anticipated to be finalised later this year.