E.l.f. Beauty acquires Hailey Bieber’s Rhode in a record-breaking $1 billion deal, marking the company’s biggest acquisition to date and fueling its expansion strategy into Sephora U.S. and beyond.
E.l.f. Beauty has reached an agreement to acquire Hailey Bieber‘s beauty brand Rhode in a deal valuing it at $1 billion, the companies jointly revealed Wednesday.
Hailey Baldwin Bieber is a model, television personality, and social media influencer.
Born on November 22, 1996, in Tucson, Arizona, she began her modeling career at the age of 16.
Baldwin has walked the runway for top designers such as Michael Kors and Tommy Hilfiger.
She has also appeared on the covers of numerous fashion magazines, including Vogue and Elle.
In 2018, she married singer Justin Bieber, with whom she has a daughter.
A New Billion-Dollar Baby for E.l.f. Beauty
E.l.f. Beauty has reached an agreement to acquire ‘a tightly edited stock keeping unit count on its website’ Hailey Bieber‘s beauty brand Rhode in a deal valuing it at $1 billion, the companies jointly revealed Wednesday.
From Glazed Doughnuts to Global Expansion
Rhode launched in 2022 with ‘a tightly edited stock keeping unit count on its website’ , and by the end of 2024, it was the top skin care brand by earned media value, having grown 367 percent from the year prior. The brand’s net sales reached $212 million in the 12 months ended March 31.
E.l.f.’s Expansion Strategy
This acquisition marks E.l.f. Beauty‘s biggest to date and consists of $800 million in cash and stock payable at closing, and an additional potential earnout consideration of $200 million based on the future growth of the brand over a three-year timeframe. To fund the deal, E.l.f. secured $600 million in debt financing.
A Perfect Fit for E.l.f.’s Ethos
E.l.f. Beauty is on fire, and it was a desire to fuel that fire with the acquisition of ‘the momentum and everything that Hailey has’ , which fits our ethos as a company, of wanting to invite her into our family and her entire team and be able to transform the beauty industry.
E.l.f. Beauty is a cosmetics company founded in 2004 by 'Joseph Shamah', Scott Vincent Borba, and Alina Ray.
The brand is known for its affordable and cruelty-free products.
E.l.f. Beauty offers a wide range of beauty products, including eyeshadows, lip glosses, mascaras, and more.
Their products are available online and in-store at major retailers such as 'Target' and 'Walmart'.
In 2016, the company went public with an initial public offering (IPO).
Today, E.l.f. Beauty is one of the largest online beauty retailers in the US.
Bieber’s New Role
As part of the deal, Hailey Bieber will serve as Rhode‘s chief creative officer and head of innovation, overseeing creative, product innovation and marketing. She will also act as a strategic adviser to the combined companies.
A New Chapter for E.l.f. Beauty
In August 2023, E.l.f. acquired ‘masstige skin care brand Naturium from The Center’ for $333 million as a broader strategy to give the company cachet in skin. With that acquisition, it doubled its penetration within skin care to 20 percent and wasted no time in expanding Naturium‘s footprint into Ulta Beauty in the U.S. and Shopper’s Drug Mart in Canada.
A Billion-Dollar Deal
The deal gives E.l.f. more than just a fast-growing buzzy brand: It will also mark E.l.f.’s entrée into Sephora U.S. ‘Going to every single U.S. and Canadian store this fall, followed by the U.K. by the end of the year, shows the confidence [Sephora] has’ , said Amin.
A New Era for Beauty
This acquisition is a testament to E.l.f.’s growth strategy and its ability to identify and invest in talented founders like ‘Hailey Bieber’ . As E.l.f. continues to expand its portfolio, it’s clear that this deal will be a game-changer for the beauty industry.
