Founded in 2022, Rhode quickly gained traction among Gen Z and millennial consumers, propelled by Bieber's personal brand and innovative marketing strategies. The brand reported 212 million in net sales for the fiscal year ending March 31, 2025, and achieved an impressive 2.2 billion in Earned Media Value (EMV) in 2024, positioning Bieber as the most impactful beauty influencer of the year.
The acquisition terms include an upfront payment of800 million—comprising 600 million in cash and 200 million in E.l.f. stock—with an additional 200 million contingent on Rhode's performance over the next three years. To finance the deal, E.l.f. secured600 million in debt financing.
Hailey Bieber will continue to play a pivotal role in Rhode's future, serving as Chief Creative Officer and Head of Innovation, as well as acting as a strategic advisor to E.l.f. Beauty. Her ongoing involvement aims to maintain the brand's authenticity and connection with its core audience.
E.l.f. Beauty's CEO, Tarang Amin, highlighted the strategic benefits of the acquisition, noting that Rhode's supply chain—primarily based in the U.S., Europe, and parts of Asia—offers diversification amid rising tariffs on Chinese imports. Currently, 75% of E.l.f.'s products are manufactured in China, and the company faces potential annual tariff costs of 50 million.
The acquisition also aligns with E.l.f.'s expansion into the prestige beauty sector, following its 355 million purchase of skincare brand Naturium in 2023. Rhode's upcoming launch in Sephora stores further signifies its transition from a direct-to-consumer model to broader retail distribution.
This move reflects a broader trend in the beauty industry, where celebrity-founded brands with authentic engagement and innovative products are gaining substantial market share. As the beauty sector continues to evolve, the Rhode-E.l.f. partnership exemplifies the potential for strategic collaborations to drive growth and meet consumer demand.
Hailey Bieber's success with Rhode not only cements her status as a formidable entrepreneur but also highlights the shifting dynamics of the beauty industry, where influence, authenticity, and strategic partnerships are key drivers of success.
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