E.l.f Beauty to acquire Hailey Bieber's Rhode in $1 billion deal
1 of 3 | Hailey and Justin Bieber watch the 2023 U.S. Open Tennis Championships on September 1, 2023, in New York City. File Photo by John Angelillo/UPI | License Photo
May 28 (UPI) -- E.l.f. Beauty announced Wednesday it will acquire Hailey Bieber's three-year-old beauty company Rhode for $1 billion.
"This powerhouse alliance between E.l.f. Beauty and Rhode is built on both brands' shared focus on disruption and product innovation, setting the stage for transformative global expansion," E.l.f. Beauty said in a news release about the acquisition of the company known for its high-performance, skin-focused products.
The 27-year-old model, who is married to pop singer Justin Bieber, in 2022 launched Rhode. The company has more than doubled its customer base over the past year and brought in $212 million in revenue in the 12 months ended March 31.
Last year, Rhode became the No. 1 skincare brand in earned media value with 367% year-over-year growth.
The acquisition comprises $600 million in cash and $200 million in stock, plus an additional potential $200 million payout based on Rhode's performance over the next three years.
The cash consists of fully committed debt financing of $600 million.
They plan to close the deal by the close of the company's second quarter of fiscal year 2026.
E.l.f's brands include e.l.f. Cosmetics, E.l.f. Skin, Keys Soulcare, Naturium and Well People.
"We can't wait to bring Rhode to more faces, places, and spaces," Bieber said in a news release. "From day one, my vision for Rhode has been to make essential skin care and hybrid makeup you can use every day. 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."
She plans to step into an expanded role of Chief Creative Officer and Head of Innovation for the new company.
"I look forward to leading the brand into this exciting new chapter of possibilities alongside my Co-Founders Michael D. Ratner and Lauren Ratner, who have helped bring my vision to life from the start," she said.
E.l.f. Chairman and CEO Tarang Amin told CNBC: "I've been in the consumer space 34 years, and I've been blown away by seeing this brand over time."
In a news release, Amin said: "E.l.f. Beauty found a like-minded disruptor in Rhode. Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible. We are excited by Rhode's ability to break beauty barriers, fully aligning with e.l.f. Beauty's vision to create a different kind of company. Rhode is a beautiful brand that we believe is ready for rocketship growth.
E.l.f. shares declined about 4% in extended trading in the New York Stock Exchange. After the market closed at 4 p.m., the company also posted fourth-quarter financial data: $332.7 million revenue and 76 cents adjusted earnings per share over nine months.
About 75% of its products come from China, which has been slapped with a 30% duty on exports to the U.S. Last week, the company announced plans to raise prices by $1 on Aug. 1 to offset higher costs from tariffs.
Hailey Bieber is the daughter of actor Stephen Baldwin and her maternal grandfather is Brazilian musician Eumir Deodato.
She married Justin Bieber in November 2018 and they have one child, who is 9 months old. Justin Bieber is 31.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
UPI
an hour ago
- UPI
Fed chair tells Trump policy will not be politically influenced
Federal Reserve Chair Jerome Powell had a meeting with President Donald Trump on Thursday. File Photo by Annabelle Gordon/UPI | License Photo May 30 (UPI) -- The Federal Reserve chair, Jerome Powell, has told President Donald Trump that monetary policy will not be influenced by politics. Powell and Trump had a meeting Thursday as the president has been pressuring the central bank to lower interest rates. A statement published by the Reserve following the meeting said that Powell and Trump discussed economic issues, including growth, employment and inflation. What Powell did not discuss was his expectation for monetary policy, according to the sternly worded statement, "except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook." "Chairman Powell said that he and his colleagues on the [Federal Open Market Committee] will set monetary policy, as required by law, to support maximum employment and stable prices and will make those decisions based solely on careful, objective and non-political analysis," the statement said. The meeting was held at Trump's invitation, it added. White House press secretary Karoline Leavitt confirmed during a press conference Thursday that Trump saw the statement and that it was "correct." "However, the president did say that he believes the Fed chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage to China and other countries," she said. The announcement comes as the Trump administration has been seeking to influence Powell and the Fed to lower interest rates. The Fed has steadily cut the interest rate from a high of 5.5% since the summer of 2024 but has maintained a lending rate of between 4.25% and 4.5% throughout the Trump administration due to uncertainty over the president's ever-changing tariff policies. The Fed issued its most recent hold on the interest rate earlier this month over concerns about tariff-related inflation and slower economic growth. "Uncertainty about the economic outlook has increased further," the Fed said in its May 7 statement. Trump has repeatedly lashed out at the Fed and Powell. On May 2, he took to his Truth Social platform to broadcast "THE FED SHOULD LOWER ITS RATE!!!" As a reason, he pointed to a recent drop in gas prices. After the Fed maintained its interest rate hold about a week later, Trump called Powell "a FOOL, who doesn't have a clue."
Yahoo
an hour ago
- Yahoo
E.l.f. Beauty to acquire Rhode, Hailey Bieber's skincare brand, in $1 billion deal
E.l.f. Beauty (NYSE: ELF) announced on Wednesday that it has signed a definitive agreement to acquire Rhode, the beauty brand founded by Hailey Rhode Bieber, alongside its Q4 earnings for the fiscal quarter ending March 2025. (Shares of ELF closed down over 1% Wednesday afternoon before the news was announced.) Spicy AI-generated TACO memes are taking over social media because 'Trump always chickens out' Lego's first book nook is an addictively interactive diorama Forget quiet quitting: I'm using 'loud living' to redefine workplace boundaries 'E.l.f. Beauty found a like-minded disruptor in Rhode,' said E.l.f. chairman and CEO Tarang Amin. 'Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible.' According to a press release sent to Fast Company, the deal is built on 'both brands' shared focus on disruption and product innovation, setting the stage for transformative global expansion,' and is in line with E.l.f. Beauty's vision 'to create a different kind of beauty company by building brands that disrupt norms, shape culture and connect communities.' Bieber will step into an expanded role as Rhode's chief creative officer and head of innovation. 'I look forward to leading the brand into this exciting new chapter of possibilities alongside my co-founders Michael D. Ratner and Lauren Ratner, who have helped bring my vision to life from the start,' Bieber said in a statement. Rhode plans to launch its first physical in-store partnership with retailer Sephora throughout North America and the U.K. before the end of the year, and has doubled its consumer base over the past year, driving a total of $212 million in net sales in the 12 months that ended March 31, 2025. The $1 billion deal is comprised of $800 million of consideration payable at closing in a combination of cash and stock, subject to customary adjustments, and an additional potential earnout consideration of $200 million based on the future growth of the brand over a three-year time frame. E.l.f. Beauty previously cut its full-year guidance when it last reported earnings for Q3, after seeing a 36% drop in profits and 'softer than expected' sales trends in January, according to CNBC. In its fiscal third quarter ending December 31, 2024, the cosmetics company reported revenue of $355 million versus $330 million expected, and EPS, or earnings per share, of 74 cents, adjusted from 75 cents. E.l.f. Beauty has a market cap of $5.10 billion as of market close Wednesday. The Oakland, California-based skincare and cosmetic products company was founded by Joseph Shamah and Scott Vincent Borba in 2004. This post originally appeared at to get the Fast Company newsletter: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
UPI
2 hours ago
- UPI
Famous birthdays for May 30: Antoine Fuqua, Idina Menzel
1 of 2 | Antoine Fuqua attends the premiere of "The Terminal List" at the DGA Theatre in Los Angeles on June 22, 2022. The filmmaker turns 60 on May 30. File Photo by Jim Ruymen/UPI | License Photo
