E.l.f. Beauty has announced that it will acquire Hailey Bieber’s skincare brand, Rhode, in a deal valued at up to $1 billion. This move helps E.l.f. grow its skincare division and connect with higher-income customers.
The deal includes $800 million in cash and stock, plus a potential $200 million more if Rhode hits performance targets over the next three years. The acquisition is expected to close by the second quarter of fiscal year 2026, which is later this year.
E.l.f. CEO Tarang Amin praised Rhode’s rapid growth, saying it reached $212 million in sales in under three years with only 10 products and no retail presence—something he didn’t think was possible.
Hailey Bieber said she’s thrilled to work with E.l.f. to bring Rhode to more people around the world. Her goal from the beginning was to make essential skincare and everyday makeup that are easy to use.
Rhode plans to expand into Sephora stores in North America and the UK by the end of the year. Although the brand started online only, it has more than doubled its customer base in the past year.
As part of the deal, Bieber will stay on as Rhode’s Chief Creative Officer and Head of Innovation, continuing to lead product development, marketing, and creative work. Her influence has been key to the brand’s success. In 2023, Rhode became the top skincare brand in earned media value, growing 367% year-over-year.
Goldman Sachs called the move a smart one, as it adds a prestige brand to E.l.f.'s portfolio and brings in new types of customers. Rhode's average product price is in the high $20s, compared to E.l.f.'s usual $6.50 range.
E.l.f. shares jumped over 25% following the announcement, helped by strong fiscal Q4 results. The company beat expectations with $333 million in revenue and 78 cents per share in adjusted earnings. However, E.l.f. warned that it won’t provide a forecast for fiscal 2026 due to uncertainty around U.S.-China tariffs.
Most of E.l.f.'s products come from China, which now faces a 30% tariff. The company plans to raise prices by $1 starting in August to offset these costs. Despite the economic challenges and high interest rates, the Rhode acquisition shows E.l.f. is betting that customers will continue spending on premium skincare.