First the cover of Vogue, now one of the highest-profile acquisitions in beauty: Hailey Bieber has inked a billion-dollar deal with e.l.f. Cosmetics for her fast-growing skincare and beauty brand, Rhode.
“The most important thing to me is to keep bringing rhode to more spaces, places, and faces globally,” the supermodel said on social media in announcing the move on May 28.
The acquisition is said to be the largest ever in e.l.f.’s history. It signifies the company’s expansion into the skincare realm, which began in 2023 with the launch of e.l.f. SKIN, and into prestige beauty markets as well.
Bieber, 28, will stay on as the face of the brand. She plans to take on the role of Rhode’s Chief Creative Officer and Head of Innovation, plus serve as a strategic advisor to e.l.f.
It's a bright spot in a tumultuous time for Bieber. The announcement came on the heels of her debut appearance on the cover of Vogue in May, but also amid reports of her husband, Justin Bieber, suffering financial hardship and struggling with physical and mental health.
Known for her minimalist clean-girl aesthetic and dewy skin, Bieber gave the brand her own middle name when she launched Rhode in 2022 with 10 core products, which the brand has tweaked and refined over time.
Rhode catapulted out of the gate, powered by the celebrity status and significant social media impact of Bieber and her A-list circle. The model deftly straddled the line between personal and business as she incorporated Rhode into her social media posts and public appearances, her iPhone clad in a Rhode phone case with a built-in slot for its Peptide Lip Tint.
Products such as Rhode’s Peptize Glazing Fluid and Barrier Butter, plus lip and cheek tints infused with trending skincare ingredients, helped popularize the glowing, moisturized “glazed donut skin” trend (reinforced by a clever collab with Krispy Kreme Donuts).
The brand's prolific, interactive TikTok account, run by savvy social managers and heavily featuring Bieber, serves as an engine fueling its popularity among Gen Z.
Rhode shied away from brick-and-mortar shops in favor of selling online, with occasional bougie pop-ups in locations such as Coachella, London, and the Mall of Africa.
The deal with e.l.f. includes an up-front payout of $600 million cash to Rhode’s owners (Bieber, CEO Nick Vlahos, and co-founders Lauren and Michael D. Ratner) and $200 million in shares of e.l.f. stock to the brand’s equityholders, according to The Hollywood Reporter.
There’s also a potential $200 million bonus based on Rhode’s performance over the next three years.
While Rhode is a direct-to-consumer brand, plans are in the works to roll it out to Sephora and other major retailers.
Shares of e.l.f. jumped more than 25% after the deal was announced.