Hailey Bieber sells beauty brand Rhode for $1billion just 3 years after launch

is selling her beauty and skincare brand to e.l.f. Beauty in a deal worth up to $1billion (£740million). Announced on Wednesday, May 28, the acquisition marks one of the most high-profile beauty deals in recent years, according to .

In a press release announcing the acquisition, shared the deal includes $800 million in cash and stock at closing, plus a “potential earnout consideration of $200 million based on the future growth of the brand” over three years. The deal is expected to close in the second fiscal quarter of 2026, pending approvals.

Bieber will continue her role as founder while expanding her remit as Rhode’s chief creative officer and head of innovation, overseeing creative, product innovation and marketing. She will also take on a new role, acting as a strategic advisor to the combined companies.

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Speaking to Vogue Business, Bieber confirms she’s been looking for the right partner for her namesake business. “Finding a home for Rhode was a really scary process, but as soon as I met the Elf Beauty team, I could tell they had such a strong sense of community and that spoke volumes to me because I know how I feel about our Rhode community," she said.

Bieber said she admired e.l.f.’s disruptive strategy within the beauty space. “I could have gone to a table of suits (referencing brand suitors), but Elf Beauty’s partnership offering was different,” she told Vogue. E.l.f. Chairman and CEO Tarang Amin says it found a “like-minded disruptor in Rhode”.

E.l.f. Beauty was long relegated to the low-tier status of “dupe” brand but has gained a solid foothold in the beauty industry for its steady rollout of innovative products at accessible prices and consistent quality. E.l.f.’s sales have grown for 25 consecutive quarters, according to Business of Fashion.

Rhode has also grown rapidly since its founding in 2022, due in large part to its high-tech yet accessible skincare formulas and Bieber’s consistent online promotion. In its latest fiscal year ending in March 2025, the brand generated $212 million (£157million) in net sales from a line of only 10 products.

Rhode’s success stands as a marked success in the landscape of failed . News of the acquisition also comes after Rhode’s recent announcement that it will launch in Sephora UK by the end of the year and in Sephora Canada and US as early as the fall.

The news also follows the launch of Rhode's new pocket blushes this past March. Rhode's pocket blushes were released last year and received amazing praise from shoppers and our beauty team at the .

The latest shade drop has fans calling it the "best shade yet". There are actually two new shades, both in the same berry family, with one being warmer and one cooler. The shades are: (a warm red berry), and (a cool purple berry).