e.l.f. Beauty has agreed to acquire Hailey Bieber’s lifestyle beauty brand Rhode for $1bn, further diversifying its brand portfolio.

The deal is set to propel e.l.f. Beauty into a transformative phase of global expansion, leveraging both companies’ commitment to innovation and disruption in the beauty sector.

e.l.f. Beauty will pay $800m at closing, consisting of $600m in cash and $200m in newly issued e.l.f. Beauty common stock, equivalent to around 2.6m shares.

The deal also includes an additional $200m earnout based on Rhode’s performance up to 2028.

The closing purchase price is 3.8 times Rhode’s last 12 months (LTM) net sales of $212m as of 31 March 2025.

e.l.f. chairman and CEO Tarang Amin said: “e.l.f. Beauty found a like-minded disruptor in Rhode.

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“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.”

Subject to standard closing conditions and regulatory approvals, the transaction is expected to close in the second quarter of fiscal 2026.

Rhode doubled its consumer base and generated $212m in net sales in the 12 months leading up to 31 March 2025.  

Its products, which have been exclusively available on rhodeskin.com, are set to debut in physical stores through a partnership with Sephora in North America and the UK in the second half of 2025.

Bieber will maintain her role as founder and take on additional responsibilities as chief creative officer and head of innovation, as well as act as a strategic advisor to the combined entity.

Rhode co-founder and co-executive chairman Michael Ratner and its co-founder, president and chief brand officer Lauren Ratner, along with CEO Nick Vlahos, will continue to lead the brand from its Los Angeles office.

Bieber stated: “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 Ratner and Lauren Ratner, who have helped bring my vision to life from the start.”

In 2025, e.l.f. Beauty became the first cosmetics brand to experiment with real-world transactions on the Roblox platform, leveraging Walmart’s innovative technology.