Mannequin and entrepreneur Hailey Rhode Bieber got here up with a billion-dollar thought—and now cosmetics big e.l.f. Magnificence is paying that sum to amass it. On Wednesday, e.l.f. Magnificence introduced it could purchase the Rhode way of life model based by Bieber, paying $800 million in money and inventory payable at closing, plus an extra potential earnout of $200 million based mostly on Rhode’s development over the following three years.
Bieber, who’s married to singer Justin Bieber and is the daughter of actor Stephen Baldwin, launched Rhode in 2022. “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,” Bieber stated in an announcement.
Rhode is a “disruptor in the beauty space,” e.l.f. Magnificence CFO Mandy Fields advised Fortune. “Hailey has built a brand that has gone from zero dollars to $212 million in less than three years.”
Rhode, which focuses on make-up and skincare, has constructed a robust direct-to-consumer enterprise. The model launched with three core merchandise—the Peptide Glazing Fluid, Barrier Restore Cream, and Peptide Lip Therapy—and has since expanded its choices.
The excitement on social media for Rhode is tangible, with greater than 3 million followers on Instagram. Rhode generated $248 million in earned media worth (EMV) in 2024, up roughly 366% yr over yr, in line with CreatorIQ, an influencer advertising and marketing device. Bieber’s private Instagram account has 54 million followers.
Rhode’s merchandise are at the moment out there on rhodeskin.com, and plans are within the works to launch its first bodily in-store partnership with Sephora throughout North America and the U.Ok. later this yr.
Within the cosmetics world, Rhode is taken into account to be within the entry-level status class, whereas e.l.f. Magnificence is extra mass-market. Buying Rhode helps diversify e.l.f. Magnificence’s buyer base, channels, and provide chain, Fields stated. Rhode has manufacturing within the U.S., different elements of Asia, and Europe. “We have a disciplined approach to M&A,” Fields defined. The corporate acquired the skin-care model Naturium in 2023 for $355 million, doubling e.l.f. Magnificence’s presence in skincare.
“Rhode additional diversifies our portfolio with a fast-growing model that makes the very best of status accessible,” e.l.f. Chairman and CEO Tarang Amin stated in an announcement.
e.l.f. Magnificence is a favourite model amongst Gen Z and is gaining reputation with millennials and Gen X. Bieber is amongst its superstar and influencer connections. The corporate has additionally collaborated with actress Jennifer Coolidge and singers Meghan Trainor, Alicia Keys, and Manuel Turizo.
Bieber will proceed as founder and also will function Rhode’s chief inventive officer and head of innovation, overseeing inventive course, product innovation, and advertising and marketing. “I look forward to leading the brand into this exciting new chapter of possibilities alongside my cofounders Michael D. Ratner and Lauren Ratner,” she stated.
Earlier this yr, Bieber tapped funding bankers at JPMorgan Chase and Moelis to discover a purchaser for the cosmetics model, in line with reviews. Gross sales of celebrity-founded magnificence manufacturers surpassed $1 billion in 2023, representing 57.8% year-over-year development—far outpacing the general magnificence trade’s development fee.
This story was initially featured on Fortune.com
