In a landmark deal for a direct-to-consumer beauty brand, e.l.f. Beauty announced on Wednesday, May 28, its plans to acquire rhode — the makeup and skincare line founded by model and entrepreneur Hailey Bieber — in a transaction valued at USD 1 billion.
E.l.f. was among the first wave of direct-to-consumer (DTC) beauty brands, launching online in the early 2000s. Its core strategy: forging direct relationships with consumers through the internet and social media, bypassing traditional intermediaries.
The brand gained popularity with its affordable, ’clean’ products and a savvy marketing It was able to amplify by influencer partnerships.
“e.l.f. Beauty found a like-minded disruptor in rhode,” said e.l.f. Chairman and CEO Tarang Amin. “rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible. We are excited by rhode’s ability to break beauty barriers, fully aligning with e.l.f. beauty’s vision to create a different kind of company. rhode is a beautiful brand that we believe is ready for rocketship growth.”
E.l.f. is making the largest acquisition in its history at a time when tariffs on Chinese imports are putting pressure on its business. In its quarterly results, also released Wednesday, the company withheld guidance for the current quarter, citing uncertainty around tariffs imposed by the Trump administration.
Tarang Amin explained that 75% of e.l.f.’s production comes from China, and that tariffs could cost the company up to USD 50 million a year.
E.l.f. Beauty has agreed to acquire rhode for USD 600 million in cash and USD 200 of stocks, plus an additional potential earnout consideration of USD 200 million based on rhode’s performance over the next three years.
The purchase price represents approximately 3.8 times rhode’s net sales of USD 212 million for the twelve months ending March 31, 2025.
“Our partnership with e.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally,” commented Hailey Bieber.
With over 50 million Instagram followers, Hailey Bieber — daughter of actor Stephen Baldwin — has modeled for major brands including Ralph Lauren and Tommy Hilfiger. She will remain involved in the brand’s development as Rhode’s Chief Creative Officer and Head of Innovation, alongside co-founders Michael D. Ratner and Lauren Ratner.
Founded three years ago, her brand specializes in high-end skincare and makeup, and is particularly known for its “liptint” tinted lip balms.
Rhode is expected to launch its products in brick-and-mortar stores for the first time by the end of the year at Sephora in North America and the UK.
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