E.l.f. Beauty to acquire Hailey Bieber skincare brand Rhode in up to $1 billion deal

Core Viewpoint - E.l.f. Beauty plans to acquire Hailey Bieber's beauty brand Rhode for up to $1 billion, marking its largest acquisition to date as it seeks to expand into skincare [1] Acquisition Details - The acquisition consists of $800 million in cash and stock, with an additional potential $200 million based on Rhode's performance over the next three years [1] - The deal is expected to close in the second quarter of fiscal 2026 or later this year [1] Brand Performance - Rhode has achieved $212 million in net sales within less than three years, operating solely through direct-to-consumer channels with only 10 products [2] - The brand has more than doubled its customer base over the past year and plans to launch in Sephora stores in North America and the U.K. by the end of the year [2] Leadership and Innovation - Hailey Bieber will serve as Rhode's chief creative officer and head of innovation, overseeing creative, product innovation, and marketing [3] - Under Bieber's direction, Rhode became the No. 1 skincare brand in earned media value, achieving 367% year-over-year growth [3] Strategic Fit - Rhode aligns well with E.l.f.'s growth strategy, particularly in skincare, which has gained popularity among younger consumers [4][5] - E.l.f. previously acquired skincare brand Naturium for $355 million, indicating a strong focus on expanding its skincare portfolio [5] Consumer Demographics - E.l.f. cosmetics typically have a core entry price point of about $6.50, while Rhode's products average in the high $20s, suggesting a shift towards a higher-income consumer base [6]