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Elf Acquires Rhode for $1B to Increase Global Reach

Lifestyle and Fashion

Business Honor
02 June, 2025

Elf acquires Hailey Bieber’s Rhode for $1B, aiming global development through shared values, and creative cooperation.

Recently, the companies announced that Elf cosmetics would acquire Hailey Bieber's cosmetics company Rhode for $1 billion. This is a major milestone in the beauty market, as both parties hope to increase their global presence through a strategic collaboration.

According to FactSet, the acquisition is the largest E.l.f. acquisition ever. It consists of $800 million in cash and shares, with an extra $200 million payout depending on Rhode's performance over the following three years. The transaction is expected to finalize later this year or in the second quarter of the business's fiscal year 2026.

CEO Tarang Amin told CNBC that, with 34 years of experience in the consumer industry, he was amazed by the rapid rise of the brand. In less than three years, it achieved $212 million in net sales through a direct-to-consumer model with just 10 products—a feat he hadn’t thought possible. He noted that this kind of disruption quickly drew their attention.

Bieber will continue to play a major role in Rhode’s evolution as its chief creative officer and head of innovation, while also serving as a strategic adviser across the combined companies. Rhode’s expansion includes a planned retail rollout with Sephora in North America and the U.K. later this year.

The principles of affordability, inclusivity, and clean beauty are shared by both brands. Following its continuous efforts to create a diversified portfolio that already includes Keys Soulcare, Naturium, and Well People in order to meet changing consumer expectations, E.l.f. acquired Rhode.

E.l.f. Beauty's acquisition of Hailey Bieber's Rhode represents a significant point for the beauty sector, as it unites two values-led and disruptive brands. The partnership intends to propel growth on a global scale, as it merges Rhode's viral direct to consumer strategy with E.l.f.'s broad retail reach and innovation design capabilities. With Hailey Bieber still at the helm of Rhode's creative vision and a carefully planned retail growth on the way, this partnership prepares the two firms for long-term success in a changing environment.