e.l.f. Beauty to acquire rhode, Hailey Bieber’s skincare brand, in $1 billion deal

e.l.f. Beauty (NYSE:ELF) announced on Wednesday that it has signed a definitive agreement to acquire rhode, the beauty brand founded by Hailey Rhode Bieber, alongside its Q4 earnings for the fiscal quarter ending March 2025. (Shares of ELF closed down over 1% Wednesday afternoon, before the news was announced.)

“e.l.f. Beauty found a like-minded disruptor in rhode,” said e.l.f. chairman and CEO Tarang Amin. “rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible.”

According to a press release sent to Fast Company, the deal is built on “both brands’ shared focus on disruption and product innovation, setting the stage for transformative global expansion” and is in line with e.l.f. Beauty’s vision “to create a different kind of beauty company by building brands that disrupt norms, shape culture and connect communities.”

rhode plans to launch its first physical in-store partnership with retailer Sephora throughout North America and the U.K. before the end of the year, and has doubled its consumer base over the past year, driving a total of $212 million in net sales in the 12 months that ended March 31, 2025.

The $1 billion deal is comprised of $800 million of consideration payable at closing in a combination of cash and stock, subject to customary adjustments, and an additional potential earnout consideration of $200 million based on the future growth of the brand over a three-year timeframe.

e.l.f. Beauty previously cut its full-year guidance when it last reported earnings for Q3, after seeing a 36% drop in profits and “softer than expected” sales trends in January, according to CNBC. In its fiscal third quarter ending December 31, 2024, the cosmetics company reported revenue of $355 million vs. $330 million expected; and an EPS, or earnings per share, of 74 cents adjusted from 75 cents. e.l.f. Beauty has a market cap of $5.10 billion, as of market close Wednesday.

The Oakland, California-based skincare and cosmetic products company was founded by Joseph Shamah and Scott Vincent Borba in 2004.

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