E.l.f. Beauty announced plans to acquire Hailey Bieber’s beauty brand, Rhode, in a deal potentially worth up to $1 billion, marking E.l.f.’s largest acquisition to date. The agreement comprises $800 million in cash and stock, with an additional potential $200 million based on Rhode’s future performance. The acquisition is set to close in the second quarter of E.l.f.’s fiscal 2026.
CEO Tarang Amin highlighted Rhode’s impressive growth, noting that the brand generated $212 million in revenue with just ten products in under three years. Hailey Bieber expressed enthusiasm about the partnership, stating it will help elevate Rhode’s reach and enhance product innovation. Since its launch in 2022, Rhode has doubled its customer base and is set to expand into Sephora stores in North America and the U.K.
This acquisition aligns with E.l.f.’s strategy to deepen its footprint in skincare—a market increasingly popular among consumers, especially younger ones. In 2023, E.l.f. also acquired skincare brand Naturium. With Rhode’s products priced higher than E.l.f.’s typical offerings, this acquisition targets a different consumer segment while maintaining a similar marketing approach.
E.l.f. recently reported robust fourth-quarter earnings, surpassing analyst expectations in revenue and earnings per share. Despite strong sales growth, investor concerns about slowing expansion and tariff impacts on products sourced from China prompted a drop in E.l.f.’s stock price by over 13% in extended trading. The company plans to raise prices to offset increased costs from tariffs, although uncertainty surrounding future tariff negotiations adds complexity to its financial outlook.
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