E.l.f. Beauty acquiring Hailey Bieber’s rhode for $1B
E.l.f. Beauty has signed an agreement to acquire rhode, the lifestyle beauty brand founded by Hailey Bieber.
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 rocketship growth.”
Rhode’s multitasking and efficacious products, made with innovative ingredients for visible results, seek “to glaze your skin with goodness,” the companies shared.
[Related: L’Oréal utilizing AI to elevate SkinCeuticals’ e-commerce platform]
Following the acquisition, Bieber will continue her role as founder and additionally serve as rhode’s chief creative officer and head of Iinnovation, overseeing creative, product innovation and marketing. She will also act as a strategic advisor to the combined companies.
With the team since Bieber’s inception of rhode, co-founder 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.
“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 skin care 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.”
Rhode’s products are currently available on 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.
