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E.l.f. Beauty to Acquire Hailey Bieber’s Rhode for $1 Billion

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Hailey Bieber Rhode Beauty Acquisition

NEW YORK, NY – E.l.f. Beauty announced plans to acquire Hailey Bieber‘s beauty brand Rhode in a deal worth up to $1 billion. This agreement is E.l.f.’s largest ever, combining $800 million in cash and stock with a potential additional $200 million payout based on Rhode’s performance over the next three years. The acquisition is expected to close in the second quarter of fiscal year 2026.

CEO Tarang Amin highlighted the impressive growth of Rhode, stating, “In less than three years, they’ve gone from zero to $212 million in net sales with only ten products. That level of disruption definitely caught our attention.” Bieber expressed her excitement about partnering with E.l.f., aiming to bring Rhode to a wider audience with innovative products.

Following the announcement, E.l.f. shares rose over 25%. The company reported strong fiscal fourth-quarter results but did not provide future guidance due to uncertainties around tariffs from recent U.S.-China trade relations, as E.l.f. sources about 75% of its products from China.

Goldman Sachs analysts called the Rhode acquisition a strategic move for E.l.f., as it expands the company’s reach into skincare. Rhode initially launched in 2022 and has quickly grown its customer base, generating $212 million in revenue within a year.

As part of the deal, Bieber will serve as Rhode’s chief creative officer, overseeing its creative direction and marketing. She remarked on the acquisition, noting that finding the right partner for Rhode was a challenging process, but E.l.f.’s community-oriented approach resonated with her vision.

With Rhode joining E.l.f.’s portfolio, which already includes skincare brand Naturium, Amin believes the partnership represents a perfect match. Amin emphasized Bieber’s strategic instincts and ability to disrupt the beauty industry, stating, “Hailey is more than a celebrity; she is the most thoughtful founder.”

Bieber, reflecting on Rhode’s success, stated, “I want to be the biggest beauty brand in the world, and I believe that E.l.f. is going to help me get there.” As the beauty industry evolves, experts see this acquisition as a significant milestone that could encourage further mergers and acquisitions in the sector.