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 Coins2Day. “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.
The buzz on social media for Rhode is tangible, with more than 3 million followers on Instagram. Rhode generated $248 million in earned media value (EMV) in 2024, up approximately 366% year over year, according to CreatorIQ, an influencer marketing tool. Bieber’s personal Instagram account has 54 million followers.
Rhode’s products are currently available on rhodeskin.com, and plans are in the works to launch its first physical in-store partnership with Sephora across North America and the U.K. Later this year.
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.
E.l.f. Beauty is a favorite brand among Gen Z and is gaining popularity with millennials and Gen X. Bieber is among its celebrity and influencer connections. The company has also collaborated with actress Jennifer Coolidge and singers Meghan Trainor, Alicia Keys, and Manuel Turizo.
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.
Michael D. Ratner has served as co-executive chairman of Rhode’s board since its formation, and Lauren Ratner, who currently serves as president and chief brand officer, architected the brand. The founders, along with CEO Nick Vlahos, will continue to lead the brand out of its Los Angeles office.
Earlier this year, Bieber tapped investment bankers at JPMorgan Chase and Moelis to find a buyer for the cosmetics brand, according to reports. Sales of celebrity-founded beauty brands surpassed $1 billion in 2023, representing 57.8% year-over-year growth—far outpacing the overall beauty industry’s growth rate.
