E.l.f. Beauty is acquiring Hailey Bieber’s skincare label Rhode in a landmark $1 billion deal to boost its presence in the premium skincare market and expand global distribution through strategic innovation.
By: Vibhuti Pathak
E.l.f. Beauty is taking a major leap into the high-end skincare segment by acquiring Hailey Bieber’s skincare label Rhode in a blockbuster deal valued at up to $1 billion.
Announced Wednesday (28), the acquisition includes $800 million in cash and stock, with an additional $200 million possible based on Rhode’s performance over the next three years. The transaction, which marks E.l.f.’s largest acquisition to date, is expected to close in the second quarter of fiscal 2026.
Rhode has taken the beauty world by storm since its 2022 debut, achieving $212 million in net sales with a product line of just 10 items—all sold direct-to-consumer. “In over three decades in the consumer space, I’ve never seen anything scale like this,” said E.l.f. CEO Tarang Amin. “This brand has disrupted the space and captured consumer imagination faster than I thought possible.”
View this post on Instagram
Hailey Bieber, who co-founded the brand with Michael and Lauren Ratner, will stay on as Rhode’s Chief Creative Officer and Head of Innovation. “This partnership is a powerful next step to take Rhode global and reach even more of our community with essential skincare and hybrid makeup,” Bieber said in a statement.
E.l.f. plans to use Rhode’s rapid success as a springboard to diversify its portfolio and customer base. Rhode’s average price point is in the high $20s, significantly above E.l.f.’s core offerings, which average $6.50.
This positions the company to attract more affluent consumers and broaden its retail footprint. While Rhode is currently a direct-to-consumer brand, plans are underway to launch in Sephora stores across North America and the U.K. by year’s end.
The move comes at a time of mixed fortune for E.l.f. Beauty. While the company topped Wall Street expectations for its fiscal fourth-quarter earnings—reporting $78 cents earnings per share versus the 72 cents forecasted, and $333 million in revenue over $328 million estimated—it remains vulnerable to economic headwinds.
A significant portion of its products are sourced from China, and the Trump administration’s evolving tariff policy has prompted uncertainty. Starting August 1, E.l.f. will raise prices by $1 per product to counteract the rising cost of 30% duties on Chinese imports.
Still, analysts view the Rhode acquisition as a strategic masterstroke. Goldman Sachs called it “a strategic positive” that further solidifies E.l.f.’s skincare ambitions with a brand that’s already dominant in earned media value. Rhode ranked as the No. 1 skincare brand in that category last year with a 367% year-over-year growth.
Despite the tariff risk and $600 million in deal-related debt, E.l.f. is betting big on consumers continuing to invest in premium skincare—even in uncertain economic times. With Rhode’s viral marketing, star power, and direct connection to Gen Z and Millennial consumers, E.l.f. aims to redefine what success looks like in the modern beauty industry.