Hailey Bieber’s makeup and skincare line, Rhode, is set to be acquired by Elf Beauty for approximately $1 billion, significantly expanding the budget cosmetics retailer’s offerings. The deal entails Elf paying $800 million to Rhode shareholders, comprised of cash and stock, with the possibility of an additional $200 million based on performance-related criteria.
This acquisition marks a strategic shift for Elf, which has faced pressure from declining demand in the mass market due to ongoing inflation. The move into the prestige beauty segment is seen as a vital step in enhancing their product portfolio. Rhode, which launched in 2022, has rapidly gained traction, especially among younger consumers through popular products like the $18 “peptide lip treatments,” largely driven by Bieber’s social media presence.
Bieber expressed excitement about the deal, noting that it presents a significant opportunity to broaden the brand’s reach and innovate further. Rhode has generated $212 million in sales for the year ending March 31 and is poised to expand its distribution by entering Sephora locations in the U.S., Canada, and later the UK.
Elf CEO Tarang Amin highlighted the acquisition as a way to diversify their portfolio with a dynamic, fast-growing brand that brings prestige beauty to a broader audience. The transaction is expected to finalize in the second quarter of fiscal 2026.
While Elf recently experienced a 20% drop in shares after adjusting annual forecasts downward, the Rhode acquisition may provide a much-needed boost to the company’s market position and appeal.
As the beauty industry continues to evolve, this merger could signal a new era of accessibility for luxury beauty products, enabling a wider demographic to engage with Rhode’s offerings. The continued collaboration with Hailey Bieber, who will remain as a strategic advisor, is likely to ensure that the brand maintains its innovative edge in the competitive beauty market.