Why It Matters:
E.l.f. Beauty, a powerhouse in the cosmetics world, has just made its biggest move yet—acquiring Rhode, the buzzy skincare label founded by Hailey Bieber. The deal is valued at a staggering $1 billion, underscoring the massive influence celebrity-backed beauty brands now command.
The Rise of Celebrity Beauty:
This deal puts Rhode in elite company. Selena Gomez’s Rare Beauty boasts a $2 billion valuation, helping make her a billionaire, while Kylie Jenner’s Kylie Cosmetics hit $1.2 billion before selling a majority stake to Coty for $600 million in 2019 (Jenner is now reportedly looking to buy it back). Bieber, with Rhode, is now the latest celebrity-turned-beauty mogul to join the billion-dollar club.
Deal Details:
E.l.f. is going all in—$800 million of the deal will be paid in cash and stock, with an additional $200 million tied to Rhode’s performance over the next three years. This marks the company’s largest acquisition to date.
Hailey Bieber isn’t going anywhere either. She’ll stay on as Rhode’s chief creative officer and head of innovation, leading the charge on product development, branding, and marketing.
The acquisition is expected to be finalized either by the end of this year or early next year.
Rhode’s Meteoric Rise:
Since launching just three years ago, Rhode has become a major player in skincare, pulling in $212 million in annual sales with a minimalist lineup of only ten products—all primarily sold online. The brand is also preparing for a retail rollout in Sephora stores later this year.
Why E.l.f. Wanted In:
According to CNBC, E.l.f. was drawn to Rhode for three key reasons:
Hailey Bieber’s massive star power, which helped Rhode top earned media rankings.
A strategic push deeper into skincare (E.l.f. also acquired Naturium in 2023 for $355 million).
A chance to target more premium shoppers—Rhode’s average product costs around $30, compared to E.l.f.’s $7.
The Big Picture:
This acquisition marks a bold evolution for E.l.f., blending its affordable roots with a rising luxury brand. The synergy between the two could redefine the beauty landscape—proof that in today’s market, founder-led brands with a powerful personal story are not just popular—they’re priceless.
Final Thought:
We may be witnessing a new era where celebrity founders are more than just faces of their brands—they are the brand. And that’s proving to be beauty’s most valuable asset.
