In a move that has sent ripples through the beauty industry, Hailey Bieber, model and entrepreneur, has sold her skincare and hybrid makeup brand, Rhode, to e.l.f. Beauty for an impressive $1 billion. The deal, announced earlier this week, marks a significant milestone in the rapidly growing beauty sector and highlights the continued rise of celebrity-backed brands. The transaction includes a combination of $600 million in cash, $200 million in e.l.f. stock, and an additional $200 million tied to performance-based payouts that will unfold over the next three years.
Founded just three years ago, Rhode quickly became a household name, largely due to its strong focus on essential skincare products and hybrid makeup designed for everyday use. The brand’s emphasis on simplicity, quality, and accessibility resonated with consumers, especially those looking for uncomplicated yet effective beauty routines. This resonated particularly with younger, socially conscious consumers who seek products that both serve their skincare needs and enhance their natural beauty.
The sale of Rhode to e.l.f. Beauty marks a strategic shift for both parties. Hailey Bieber, in a statement released alongside the deal, expressed her excitement over the acquisition. She reiterated her original vision for Rhode as a brand that would offer users a no-fuss, everyday skincare and makeup experience. “I’ve always been passionate about creating products that people can integrate into their daily routines. Rhode was built on that idea, and seeing it grow has been an incredible journey,” Bieber said. She further added that joining forces with e.l.f. Beauty would allow Rhode to continue its mission on a larger scale.
Founded in 2022, Rhode carved out a niche in the crowded beauty market with a relatively simple, minimalist approach to skincare and cosmetics. The brand’s product lineup features a range of high-quality, straightforward offerings, including facial oils, lip treatments, and glowy serums. The idea was to create multi-purpose products that serve as both skincare and makeup, catering to the busy modern consumer.
The acquisition by e.l.f. Beauty, a company renowned for its affordable and inclusive beauty products, offers both parties the opportunity to expand. e.l.f. Beauty, whose portfolio includes beloved brands like e.l.f. Cosmetics and WISHFUL, has steadily increased its presence in the beauty market over the past decade. The acquisition of Rhode enables e.l.f. to enhance its offerings and tap into the luxury beauty market while capitalizing on Rhode’s loyal customer base. By merging with Rhode, e.l.f. Beauty can increase its footprint among younger consumers who prioritize clean, sustainable beauty.
While Hailey Bieber has built a reputation as a celebrity figure, her decision to enter the beauty business with Rhode showcased her entrepreneurial spirit and dedication to creating a brand that resonates with real consumer needs. In interviews, Bieber has emphasized that Rhode’s core purpose was always to offer simple, effective skincare products that could complement any makeup routine.
Rhode’s success can be attributed to its transparency, quality ingredients, and celebrity endorsement. Bieber, as the public face of the brand, used her social media presence to promote the products, ensuring that the brand’s ethos was well-aligned with her personal values of authenticity and accessibility. Rhode’s products have garnered significant praise for being lightweight and easy to use, a key factor that differentiates the brand from its competitors.
The beauty market has seen a surge in celebrity-backed brands in recent years, and while many have succeeded, Rhode’s success is particularly notable because of its rapid growth in such a short time frame. In fact, the brand’s ability to thrive in a competitive marketplace is reflective of changing consumer behaviors. With increased awareness of skincare ingredients and a desire for transparency, consumers have become more discerning when choosing beauty products. Rhode’s simple but effective formula has resonated with a generation that values not only product quality but also brand integrity.
As part of the deal, Hailey Bieber will remain involved with Rhode, continuing to play a role in shaping its future. However, with e.l.f. Beauty at the helm, the brand is poised for broader distribution and further innovation in the coming years. The financial terms of the deal suggest that both parties are betting on Rhode’s continued growth, and the promise of significant performance-based payouts indicates that e.l.f. Beauty expects the brand to keep gaining traction within the beauty industry.
Rhode’s rise also underscores the growing importance of direct-to-consumer models in the beauty industry, a shift that has been accelerated by the COVID-19 pandemic. More consumers than ever are shopping online, and brands like Rhode have capitalized on this trend by building strong online communities and offering personalized experiences.
As e.l.f. Beauty prepares to integrate Rhode into its portfolio, the industry will be watching closely to see how this acquisition reshapes the competitive landscape of the beauty market. Will Rhode maintain its unique identity under the larger e.l.f. umbrella? Only time will tell. What’s certain, however, is that the $1 billion deal signals the continued consolidation and growth within the beauty industry, with celebrities increasingly positioning themselves as key players in the market’s future.