Hailey Bieber sells Rhode cosmetics brand to budget cosmetics company for $1 billion
American cosmetics company Elf Beauty will acquire the cosmetics and skincare brand Rhode, founded by model Hailey Bieber, for approximately $1 billion, Reuters reports.
Under the terms of the agreement, Elf will pay Rhode shareholders $800 million in cash and shares, and an additional $200 million if certain conditions related to the brand's financial results are met.
Rhode, a brand founded in 2022, quickly gained popularity thanks to viral products on TikTok, including $18 lip balms. These products rely heavily on the influence of Hailey Bieber herself on social media.
For Elf, known for its affordable beauty products starting at $2, this deal marks an entry into the premium segment of the market, where demand has recently been declining due to inflation.
According to Elf CEO Tarang Amin, Rhode will allow the company to expand its portfolio and make "premium beauty" more accessible.
Rhode generated about $212 million in revenue in 2023. The brand plans to hit Sephora shelves in the US, Canada, and later in the UK in the fall.
Hailey Bieber will remain in her role as the brand's founder and will become a "strategic advisor" after the deal closes, which is expected in the second quarter of fiscal 2026.
- On January 13, it became known that after a several-year hiatus, Canadian pop singer Justin Bieber may return to the big stage as early as 2025.
