This week Hailey Bieber’s upstart beauty brand Rhode entered a new era with a US$1billion acquisition by e.l.f. Beauty (short for eyes, lips and face), in a deal that is already being hailed as one of the largest in celebrity beauty history.
“Just three years into this journey, 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,” Bieber said in a statement.
The fashion model and entrepreneur launched her minimalist brand in 2022 with just three skincare essentials, quickly becoming a cult favorite on social media. Viral TikToks featuring Rhode’s pocket blush and peptide lip treatments have significantly contributed to the hype, along with the model’s following of 55 million on Instagram and 15 million on TikTok.
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Rhode reported net sales of US$212 million for the 12 months ending 31 March, and will hit the shelves at Sephora stores in the US and UK later this year (for the first time since the brand’s debut). It is not yet available in physical stores in Macao.
The sale structure involves an US$800 million deal, comprising US$600 million in cash and US$200 million in stock, with the potential for an additional US$200 million in earnouts.
With a distinctive clean aesthetic, and a line of “intentional, everyday products” that nourish skin barrier over time, Rhode has captured Gen Z, resonating with effortless, no-makeup looks.
Bieber will stay on as Rhodes chief creative officer, overseeing creative, product innovation and marketing. The 28-year-old follows in the footsteps of other celebrities who’ve built beauty empires from scratch, like Selena Gomez’s Rare and Rihanna’s Fenty.
