e.l.f. Beauty has confirmed an agreement to acquire rhode in a deal valued at $1 billion. Acquiring Hailey Bieber’s lifestyle beauty brand will mark a significant move into the prestige beauty category for the California-based cosmetics company.
The agreement will see e.l.f. Beauty take control of rhode, the fast-growing beauty brand launched by Bieber just three years ago. Known for its high-performance skincare products and minimalist aesthetic, rhode has rapidly gained traction in the beauty space and will now become part of e.l.f.’s growing brand portfolio.
The deal, set at $1 billion, includes $800 million to be paid at closing, made up of $600 million in cash and $200 million in newly issued shares of e.l.f. Beauty stock, along with a further $200 million in potential earnouts dependent on rhode’s growth over the next three years.
“e.l.f. Beauty found a like-minded disruptor in rhode,” said Tarang Amin, Chairman and CEO of e.l.f. Beauty. “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.”
Inspired by Bieber’s skincare philosophy of “one of everything really good,” rhode focuses on multitasking products formulated with innovative ingredients and designed for effective, everyday use. The brand markets itself as offering skin care that will “glaze your skin with goodness.”
Since its launch, rhode has seen rapid growth. Over the 12 months ending 31 March 2025, it generated $212 million in net sales and more than doubled its customer base. Products are currently sold through its own website, rhodeskin.com, with its first bricks-and-mortar retail partnership with Sephora due to roll out across North America and the UK later this year.
“We can’t wait to bring rhode to more faces, places, and spaces,” Bieber said. “From day one, my vision for rhode has been to make essential skin care and hybrid makeup you can use every day. 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. As I continue as Founder and step into an expanded role of Chief Creative Officer and Head of Innovation, I look forward to leading the brand into this exciting new chapter of possibilities alongside my Co-Founders Michael D. Ratner and Lauren Ratner, who have helped bring my vision to life from the start.”
In 2024, rhode became the number one skincare brand in terms of Earned Media Value (EMV), achieving a 367% increase year-on-year. This performance was set to be driven in large part by Bieber’s influence as a leading beauty tastemaker and influencer.
Alongside Bieber, co-founders Michael D. Ratner and Lauren Ratner will also continue in leadership roles. Michael D. Ratner has served as Co-Executive Chairman of rhode’s board since its inception, while Lauren Ratner is the brand’s President and Chief Brand Officer, having shaped rhode’s identity since the beginning. CEO Nick Vlahos will remain at the helm, and the team will continue operating out of their base in Los Angeles, California.
The acquisition is e.l.f. Beauty’s latest strategic move to expand its presence in skincare and higher-end beauty. The company, best known for its namesake e.l.f. Cosmetics line, launched e.l.f. SKIN in 2020 and acquired Naturium in 2023, doubling its skincare presence. According to the firm, e.l.f. Cosmetics is currently the number one cosmetics brand in units sold in the U.S., and second in terms of dollar share.
The rhode deal not only extends e.l.f.’s reach into the prestige beauty channel but also marks a new partnership with global beauty retailer Sephora, further expanding the company’s distribution capabilities.
The purchase price values rhode at roughly 3.8 times its trailing 12-month net sales of $212 million. The acquisition, which has been approved by e.l.f. Beauty’s Board of Directors, is expected to close in the second quarter of Fiscal 2026, subject to standard regulatory approvals and closing conditions.
