e.l.f. Beauty Announces Definitive Agreement to Acquire rhode in $1-Billion Deal

Fast-growing Los Angeles beauty brand founded by Hailey Bieber will further diversify e.l.f. Beauty’s portfolio of brands

e.l.f. Beauty has signed a definitive agreement to acquire rhode, a fast-growing, multi-category Los Angeles-based lifestyle beauty brand founded by Hailey Bieber known for its collection of skin-focused products. 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.

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 timeframe.

“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. 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 rocket ship growth.”

Bieber set out to create a brand centered around her skincare philosophy of “one of everything really good.” rhode’s multitasking and efficacious products, made with innovative ingredients for visible results, seek “to glaze your skin with goodness.”

rhode has quickly established itself as a disruptor in content, commerce and community, building a robust direct-to-consumer business. The brand has seen incredible growth, more than doubling its consumer base over the past year and driving a total of $212 million in net sales in the 12 months ended March 31, 2025. rhode’s products are currently available on www.rhodeskin.com, with 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.

Bieber will continue her role as founder and additionally serve as rhode’s chief creative officer and head of innovation, overseeing creative, product innovation and marketing. She will also act as a strategic advisor to the combined companies. Her influence, paired with the brand’s innovative marketing strategy and team, fueled rhode to be the No. 1 skincare brand in Earned Media Value in 2024, representing 367% year-over-year EMV growth.

“We can’t wait to bring rhode to more faces, places and spaces. From day one, my vision for rhode has been to make essential skincare and hybrid makeup you can use every day,” said Bieber. “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. As I continue as founder and step into an expanded role of 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.”

With the team since Bieber’s inception of rhode, Michael D. Ratner has guided rhode since its formation and has run the board as co-executive chairman, while co-founder Lauren Ratner architected the brand and currently serves as president and chief brand officer. The founders with CEO Nick Vlahos will continue to lead the brand out of its Los Angeles office, nurturing its entrepreneurial spirit and maintaining the brand’s passionate team of employees.

Under the terms of the definitive agreement, e.l.f. Beauty has agreed to acquire rhode for $800 million at closing, comprised of $600 million of cash and $200 million, or approximately 2.6 million shares, of newly issued shares of e.l.f. Beauty common stock issued to existing equity holders of rhode, subject to certain customary purchase price adjustments. The transaction also includes an additional potential earnout consideration of $200 million based on the future growth of the brand over a three-year post-closing period.

The definitive agreement has been approved by the e.l.f. Beauty board of directors. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second quarter of fiscal 2026.

Latham & Watkins LLP is serving as e.l.f. Beauty’s legal advisor. J.P. Morgan Securities LLC and Moelis & Company LLC are serving as financial advisors to rhode, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as rhode’s legal advisor. Bieber’s legal advisors are Cravath, Swaine & Moore LLP.

Information was sourced from BusinessWire. To learn more, contact kkatten@elfbeauty.com, scritchell@elfbeauty.com or lena@derris.com.