E.l.f. Beauty Acquires Hailey Bieber’s Rhode: Key Facts
Deal Structure
- Total Value: Up to $1 billion
- Upfront Payment: $800 million ($600 million cash, $200 million in e.l.f. stock)
- Earnout: $200 million based on Rhode’s performance over three years
- Closing: Expected in Q2 of e.l.f.’s fiscal 2026 (late 2025)
Rhode’s Performance
- Revenue: $212 million in net sales for the 12 months ending March 31, 2025
- Products: 10, including Peptide Lip Treatments, Glazing Milk toner, blush, and lip liners
- Market Position: No. 1 skincare brand in Earned Media Value (EMV) in 2024, with 367% year-over-year growth
- Distribution: Direct-to-consumer via rhodeskin.com; Sephora partnership in U.S., Canada, and U.K. starting fall 2025
Strategic Impact
- E.l.f.’s Goal: Expand into prestige skincare, targeting higher-income consumers
- Bieber’s Role: Continues as founder, chief creative officer, head of innovation, and strategic advisor
- Team: Co-founders Michael and Lauren Ratner and CEO Nick Vlahos join e.l.f.
- Challenges: Tariff risks (75% of e.l.f.’s products from China), brand integration
Industry Context
- Competitors: Selena Gomez’s Rare Beauty ($367 million in 2023), Rihanna’s Fenty Beauty
- Market Trends: Celebrity brands drive $1 billion+ in 2023 sales; M&A slowdown for brands like Kosas, Makeup by Mario
- E.l.f.’s Portfolio: Includes e.l.f. Cosmetics, e.l.f. SKIN, Naturium ($355 million acquisition in 2023), Keys Soulcare
Sources: CNBC, WWD, Reuters, Business of Fashion