In one of the most significant beauty industry deals in recent years, e.l.f. Beauty has announced the acquisition of Hailey Bieber’s skincare brand rhode for $1 billion. This move not only signals e.l.f.’s ambition to expand its portfolio into the prestige skincare space but also highlights the growing influence of celebrity-founded brands—especially those driven by Gen Z demand.
A Billion-Dollar Bet on Glazed Skin and Gen Z Influence
Founded in 2022 by model and entrepreneur Hailey Bieber, rhode quickly carved out a unique space in the skincare world with a minimalist, hydration-focused product line and a powerful online presence. The Peptide Glazing Fluid and Barrier Restore Cream became cult favorites, while the brand’s branding—glossy, neutral-toned, and unmistakably “Hailey”—set the tone for a new generation of skincare marketing.
e.l.f. Beauty, known for its affordable and high-performing cosmetics, sees rhode as more than a trend. According to their press release, rhode generated $212 million in net sales over the last 12 months, an astonishing figure for such a young brand. The acquisition includes $600 million in cash, $200 million in newly issued shares, and up to $200 million in performance-based earnouts over the next three years.
Hailey Bieber Remains at the Helm
Hailey Bieber will remain deeply involved post-acquisition as Chief Creative Officer and Head of Innovation at rhode. Her ongoing presence ensures brand continuity and keeps the cultural and visual DNA of rhode intact. For e.l.f., keeping Hailey involved is not just strategic—it’s essential. Her brand power and massive online following have been key growth drivers from day one.
In a joint statement, Bieber emphasized her excitement to expand globally and bring rhode to more retail platforms, including Sephora in North America and the UK. Currently, rhode products are sold exclusively online, but the acquisition will open doors to broader distribution and faster product development.
Why This Deal Is a Game-Changer for the Beauty Industry
The e.l.f.-rhode acquisition is more than a headline—it’s a shift in strategy for beauty conglomerates. First, it proves that clean, clinically backed skincare with Gen Z appeal is not just a fad—it’s a market force. Second, it shows how e.l.f. is reinventing itself not only as a mass beauty brand but also as a serious player in prestige beauty.
Strategically, e.l.f. gains access to rhode’s diversified supply chain—spread across the U.S., Europe, and Asia—offering a way to reduce over-reliance on China, which currently produces 75% of e.l.f.’s products. It also positions the company more competitively on the global stage, where consumers are increasingly seeking transparency, quality ingredients, and influencer authenticity.
Looking Ahead: What Consumers Can Expect
With e.l.f.’s scale and infrastructure and Hailey Bieber’s vision intact, consumers can expect faster innovation cycles, international shipping, and a broader product range—from skincare staples to color cosmetics. There’s also the likelihood of cross-brand collaborations, tech-enhanced personalization, and major retail rollouts.
This acquisition signals a new chapter where clean skincare meets mainstream retail power—and where influencer-driven brands no longer sit at the fringe but at the center of corporate growth strategies.
