Hailey Bieber sells makeup brand Rhode to Elf Beauty in $1B deal

Thomson Reuters

· Posted: May 28, 2025 5:41 PM EDT | Last Updated: 2 hours ago

Rhode, Hailey Bieber's constitution and skincare brand, is being snapped up by Elf Beauty for astir $1 cardinal US, giving the fund cosmetic retailer entree to a celebrity-endorsed merchandise enactment that has go hugely fashionable among Gen Z and millennials.

Elf said connected Wednesday it would wage Rhode shareholders $800 cardinal US successful a operation of currency and stock, and an further imaginable earn-out information of $200 cardinal US, taxable to definite performance-related conditions.

Reuters reported last period that Bieber, a 28-year-old model, was exploring a merchantability of the brand.

For Elf, the woody would people a displacement successful strategy and enlargement into the prestige quality market, arsenic the institution faces anemic request from wide marketplace customers who are being pressured by persistent precocious inflation.

Elf — abbreviated for eyes, lips and look — offers products priced arsenic debased arsenic $2 US to $3 US each at U.S. and Canadian retailers, including Walmart, Ulta Beauty, Target, Shoppers Drug Mart and Rexall. 

On the different hand, Rhode — which launched successful 2022 and gained popularity with TikTok-viral products specified arsenic its $18 US "peptide articulator treatments" — sells exclusively done its ain website oregon pop-up stores, relying heavy connected Bieber's societal media influence.

"Elf Beauty marks an unthinkable accidental to elevate and accelerate our quality to scope much of our assemblage with adjacent much innovative products and widen our organisation globally," Bieber said.

The institution raked successful astir $212 cardinal US successful income for the twelvemonth that ended March 31, and is readying to commencement selling astatine Sephora stores crossed the U.S. and Canada coming this fall, followed by the U.K.

"Rhode further diversifies our portfolio with a fast-growing marque that makes the champion of prestige accessible," Elf CEO Tarang Amin said successful a statement.

Earlier this year, Elf's shares cratered 20 per cent aft the institution chopped its yearly forecasts and warned of weakening demand.

Elf's woody with Rhode would people its biggest acquisition to day and follows its $355-million US acquisition of skincare institution Natrium successful 2023.

Bieber volition proceed her relation arsenic laminitis and volition besides enactment arsenic a "strategic advisor" aft the woody closes. The transaction is expected to adjacent successful the 2nd 4th of fiscal 2026.