e.l.f. Beauty announced on May 28, 2025, a definitive agreement to acquire Hailey Bieber's lifestyle beauty brand, Rhode, for up to $1 billion. The deal comprises $800 million in cash and stock at closing, with a potential additional $200 million earnout based on Rhode's performance over the next three years.
Rhode generated $212 million in net sales in the last 12 months solely through direct-to-consumer channels, demonstrating exceptional brand power and community engagement. This acquisition is e.l.f.'s largest ever and is expected to close in the second quarter of fiscal 2026.
The acquisition brings a complementary brand with a higher average price point (high $20s) compared to e.l.f.'s core $6.50, attracting a different consumer set. Hailey Bieber will continue as Rhode's Chief Creative Officer and Head of Innovation, overseeing creative, product innovation, and marketing, and will serve as a Strategic Advisor to the combined companies.
The deal is anticipated to be accretive to e.l.f.'s growth profile, adjusted EBITDA margins, and earnings, further diversifying its portfolio and accelerating global presence. Rhode is planned to launch in all Sephora US, Canada, and UK stores in the fall, leveraging e.l.f.'s expertise in retail expansion.
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