In a major move shaking the beauty industry, E.l.f. Beauty has officially acquired Hailey Bieber’s minimalist skincare brand, Rhode, for $1 billion. The strategic deal is set to strengthen E.l.f.’s footprint in the clean, vegan skincare market and push its presence deeper into high-end retail stores like Sephora. The acquisition will allow E.l.f. to capitalize on Rhode’s growing fanbase, Gen Z appeal, and celebrity-led branding as the company continues to dominate the affordable beauty market.
Why This Deal Matters: Skincare Meets Celebrity Influence
Hailey Bieber’s Rhode has seen explosive growth since its launch in 2022, quickly becoming a cult favorite for its minimalist, no-fuss skincare philosophy. Known for its hydrating products like the Peptide Glazing Fluid and Barrier Restore Cream, Rhode has gained popularity for its clean formulations and sleek packaging.
E.l.f., which stands for “eyes, lips, face,” is known for offering high-quality, cruelty-free, and vegan products at affordable prices. The $1 billion deal merges the power of celebrity influence with a trusted, fast-growing beauty company. According to reports from Forbes, Rhode had already crossed $100 million in revenue before the acquisition, indicating its strong market traction.
Sephora Launch by Year-End Marks New Era
E.l.f. Beauty plans to expand Rhode’s retail reach into Sephora by the end of the year. Currently, Rhode primarily sells direct-to-consumer through its website, often with products selling out within hours of release.
Moving into Sephora, one of the largest beauty retailers in the world, will give Rhode a stronger retail presence and global visibility. The launch is expected to significantly boost Rhode’s revenue and help E.l.f. tap into Sephora’s loyal customer base.
Strategic Synergy: E.l.f. + Rhode = Market Power
The acquisition is being seen as a strategic fit for both brands. E.l.f. has built a strong presence in drugstores, e-commerce platforms, and discount beauty chains. Meanwhile, Rhode has carved out a premium niche audience looking for clean beauty with a celebrity seal of approval.
By combining their reach, product innovation, and audience appeal, E.l.f. and Rhode are expected to dominate both the budget and premium skincare markets. According to a report by Business of Fashion, the merger aligns with E.l.f.’s goal to disrupt traditional beauty business models by using digital-first strategies and fast innovation cycles.
What Hailey Bieber Says About the Acquisition
Hailey Bieber, founder of Rhode, shared her excitement in a statement, saying, “Joining E.l.f. is a dream come true. I’ve always admired their commitment to clean beauty, and I believe we can take Rhode to even greater heights together.” Bieber will remain involved with Rhode as the Chief Creative Officer and brand ambassador, ensuring the company’s original vision and values remain intact under new ownership.
E.l.f. Beauty: A Record of Smart Acquisitions
This isn’t the first time E.l.f. Beauty has made headlines for savvy business moves. In 2020, the company acquired clean beauty brand W3LL People and successfully integrated it into their portfolio.
E.l.f.’s ability to scale new brands without diluting their identity has earned the company a reputation for smart, consumer-first growth. This track record gives industry insiders confidence that the Rhode acquisition will follow a similar path of success.
Vegan and Minimalist Skincare on the Rise
The skincare market has been shifting towards minimalist routines and clean, vegan ingredients. Rhode fits perfectly into this growing consumer demand. With younger buyers becoming more ingredient-conscious, brands that offer transparency and effectiveness are outperforming legacy brands. E.l.f. has long led the way in vegan, cruelty-free products, and adding Rhode only strengthens that promise.
Financial Details of the Deal
Though the full terms have not been disclosed, the acquisition was an all-cash deal valued at $1 billion. Analysts suggest that the price reflects Rhode’s high growth trajectory, strong brand equity, and celebrity-led visibility. Rhode’s rapid rise in less than three years has made it one of the most valuable celebrity-founded beauty brands in history, rivaling brands like Fenty Skin and Kylie Skin.
What This Means for Competitors
This acquisition sends a strong message to other beauty industry players. Affordable, clean, and effective skincare is the future—and those who fail to adapt may lose market share. With E.l.f. now managing one of the most viral skincare brands backed by Hailey Bieber’s global influence, other brands may need to rethink their marketing and product strategy.
What Consumers Can Expect Next
With Rhode entering Sephora under the E.l.f. umbrella, customers can expect more product availability, new launches, and possibly even lower price points due to E.l.f.’s efficient manufacturing and supply chain.
The first wave of Rhode products is expected to hit Sephora shelves by the 2025 holiday season, according to a press release on PR Newswire. New products are also rumored to be in development, focusing on body care and tinted skincare options.
Conclusion: Beauty Industry Enters a New Chapter
The acquisition of Rhode by E.l.f. Beauty is more than just a business deal—it’s a signal that the beauty industry is evolving. Younger consumers are demanding transparency, values, and results. By combining the cool, clean vibe of Rhode with E.l.f.’s powerful distribution and innovation engine, this billion-dollar merger could reshape how beauty brands are built and scaled in the digital era.
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