Model and entrepreneur Hailey Rhode Bieber came up with a billion-dollar idea—and now cosmetics giant e.l.f. Beauty is paying that sum to acquire it. On Wednesday, e.l.f. Beauty announced it would acquire the Rhode lifestyle brand founded by Bieber, paying $800 million in cash and stock payable at closing, plus an additional potential earnout of $200 million based on Rhode’s growth over the next three years.
Bieber, who is married to singer Justin Bieber and is the daughter of actor Stephen Baldwin, launched Rhode in 2022. “Just three years into this journey, our partnership with e.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally,” Bieber said in a statement.
Rhode is a “disruptor in the beauty space,” e.l.f. Beauty CFO Mandy Fields told Fortune. “Hailey has built a brand that has gone from zero dollars to $212 million in less than three years.”
Rhode, which focuses on makeup and skin care, has built a strong direct-to-consumer business. The brand launched with three core products—the Peptide Glazing Fluid, Barrier Restore Cream, and Peptide Lip Treatment—and has since expanded its offerings.
In the cosmetics world, Rhode is considered to be in the entry-level prestige category, while e.l.f. Beauty is more mass-market. Acquiring Rhode helps diversify e.l.f. Beauty’s customer base, channels, and supply chain, Fields said. Rhode has production in the U.S., other parts of Asia, and Europe. “We have a disciplined approach to M&A,” Fields explained. The company acquired the skin-care brand Naturium in 2023 for $355 million, doubling e.l.f. Beauty’s presence in skin care.
“Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible,” e.l.f. Chairman and CEO Tarang Amin said in a statement.
Bieber will continue as founder and will also serve as Rhode’s chief creative officer and head of innovation, overseeing creative direction, product innovation, and marketing. “I look forward to leading the brand into this exciting new chapter of possibilities alongside my cofounders Michael D. Ratner and Lauren Ratner,” she said.
