E.l.f. Beauty Acquires Hailey Bieber’s Rhode in $1 Billion Deal
$ELF
E.l.f. Beauty (NYSE:ELF), a prominent player in the cosmetics industry, announced the acquisition of the Rhode skin-care brand, founded by Hailey Bieber, for $1 billion. This deal includes $800 million in cash and stock at closing, with an additional potential earnout of $200 million based on Rhode’s growth over the next three years.
Rhode, known for its innovative products like the Peptide Glazing Fluid and Barrier Restore Cream, has rapidly gained a strong market presence, achieving $212 million in sales less than three years after its launch. This acquisition not only diversifies e.l.f. Beauty’s product offerings but also enhances its position in the prestige category of the cosmetics market.
E.l.f. Beauty reported a robust financial performance for the first quarter of 2025, with revenues rising 3.6% year-on-year to $332.6 million, surpassing analyst expectations. The company also demonstrated strong profitability metrics, with an adjusted EBITDA of $81.37 million, reflecting a margin improvement and beating estimates by 9.6%. These strong results, e.l.f.
E.l.f. Beautyy withdrew its full-year outlook, citing uncertainties related to tariffs. This decision reflects the company’s cautious stance in a volatile economic environment, focusing on maintaining flexibility in its operations and financial planning.
The strategic move is expected to broaden e.l.f. Beauty’s customer base and distribution channels, particularly with plans to introduce Rhode products in Sephora stores across North America and the U.K. E.l.f Beauty is pushing forward with its international expansion, particularly in the European market. The company announced plans to extend its presence with e.l.f. Cosmetics and e.l.f. SKIN into the Netherlands and Belgium by late May 2025.
This move aligns with e.l.f. Beauty’s goal to increase its market share and revenue outside the US, which has already seen a significant 66% year-over-year growth in non-US net sales.
E.l.f. Beauty’s recent activities highlight its strategic approach to growth and market. As e.l.f. Beauty continues to navigate market challenges and leverage opportunities, its focus on innovation, strategic acquisitions and global market penetration is poised to drive its success in the evolving cosmetics landscape.
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