In a major shakeup within the beauty industry, e.l.f. Beauty has acquired Hailey Bieber’s skincare and cosmetics brand, rhode, for a whopping $1 billion, marking the largest acquisition in the company’s history.
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The high-profile purchase surpasses e.l.f.’s previous acquisition of Naturium in 2023, which was valued at $355 million. The rhode deal includes $800 million in cash and stock, with the potential for an additional $200 million based on brand performance over the next three years.
A Strategic Move in the Beauty Market
Launched in 2022, rhode has quickly become a social media sensation, thanks to Hailey Bieber’s global celebrity status and massive online following. The brand generated $212 million in net sales during its last fiscal year, which ended in March 2025. Earlier this year, rhode products began hitting shelves at Sephora stores across North America and the UK, signaling aggressive retail expansion.
Hailey Bieber will continue her involvement in the brand, stepping into a more defined role as Chief Creative Officer and Head of Innovation, solidifying her long-term commitment to rhode's creative direction.
e.l.f. Eyes Global Expansion with rhode
“This acquisition is a game-changer,” said Tarang Amin, CEO of e.l.f. Beauty, during the company’s earnings call. “rhode has a tightly curated product line—just 10 items across skincare, color cosmetics, and accessories—which resonates deeply with Gen Z and millennial consumers.”
e.l.f. has carved out a dominant position among younger beauty shoppers, and this acquisition is expected to broaden rhode’s global reach and accelerate its retail presence. The brand is already known for its viral popularity, with frequent product sellouts online and fans lining up for hours at pop-up events.
Navigating Tariff Challenges
Despite this strategic acquisition, e.l.f. Beauty is facing headwinds from ongoing U.S.-China trade tensions. Due to President Donald Trump’s newly announced tariffs, about 75% of e.l.f.’s production—which currently takes place in China—is now subject to a 55% tariff rate, according to its latest earnings report.
In response, the company will implement a $1 price increase across its entire product portfolio starting August 1. Still, e.l.f. remains committed to its China-based supply chain, which it views as a long-standing competitive advantage.
“We’ve built and optimized this supply chain for 21 years,” the company said. “Our partnership with our China team and suppliers remains strong, even as we adjust for tariff impacts.”
What’s Next for rhode?
The acquisition deal is expected to close by the end of the year, pending regulatory approvals. The move solidifies rhode’s position in the competitive beauty industry and gives e.l.f. a stronger foothold in the celebrity-backed beauty market.
By integrating rhode's minimalist and skincare-forward ethos with e.l.f.'s cost-effective and trend-driven business model, the deal is expected to create a powerful synergy aimed at driving innovation and market penetration across new regions.
Key Highlights:
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Hailey Bieber’s beauty brand rhode acquired by e.l.f. for $1 billion
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e.l.f.’s largest acquisition to date
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Hailey Bieber named Chief Creative Officer of rhode
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Strong retail growth with presence in Sephora stores
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Tariffs on China-based production impact pricing
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e.l.f. plans $1 price hike amid 55% tariffs
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Potential $200M performance-based payout in deal
