Businesswoman Kylie Jenner's sister-in-law, Haley Bieber, has raked in a cool billion dollars by selling her cosmetics line, Rhode.
In a significant move, e.l.f. Beauty announced the acquisition of the rising cosmetics and skincare brand Rhode for up to $1 billion. The deal, valued at $800 million in cash and shares for Rhode's shareholders, with an additional $200 million in bonuses tied to the company's future performance over three years, is 3.8 times Rhode's annual sales of $212 million as of March 31, 2025.
The agreement was inked on May 28 and is now subject to regulatory approval, with the deal's closure anticipated in the second quarter of the 2026 fiscal year. Notably, Hayley Bieber, Rhode's founder and chief creative officer, will continue in her roles and also serve as a strategic advisor to the combined companies. The sell-off, as described by Bieber, is expected to propel Rhode's reach, foster innovation, and expand global distribution.
With the sale, Rhode, which Bieber founded in 2022, is poised to capitalize on e.l.f. Beauty's robust retail distribution network and operational expertise. Launched with a focus on minimalist, science-backed skincare products, Rhode has garnered rapid popularity due to its product aesthetic and Bieber's viral social media content such as lip gloss holders and a traveling photo booth. Rhode's sales skyrocketed, resulting in $400 million in social media mentions with a 3.75% engagement rate in one year, surpassing the industry average.
In addition to its impressive online presence, Rhode has been quick to capture the attention of key industry players like Vogue, which spotlighted the brand's success. Moreover, the acquisition presents an opportunity for e.l.f. Beauty to cater to a more affluent consumer demographic through Rhode's higher-priced, high-quality products. Plans for retail expansion include in-store partnerships with Sephora in North America and the UK by the end of 2025.
Bieber's tenure as Rhode's creative leader will ensure the brand retains its authentic voice and creative vision while leveraging e.l.f.'s capabilities to expand distribution, target new markets, and innovate in the clean, science-backed skincare and cosmetics space. The deal underscores Rhode's potential as a disruptor in the beauty industry, underpinned by a strong digital presence, product innovation, and a founder whose personal brand deeply resonates with contemporary consumers.
- The acquisition of Rhode by e.l.f. Beauty, valued at $1 billion, is expected to aid in the expansion of the brand's global distribution and fostering innovation in the fashion-and-beauty sector.
- To cater to a more affluent consumer demographic, e.l.f. Beauty aims to leverage Rhode's higher-priced, high-quality products and retail them in partnership with Sephora in North America and the UK by the end of 2025.
- Through this strategic financial move, e.l.f. Beauty is set to make inroads in the investing world, as they expand their business portfolio to include a popular lifestyle brand like Rhode, known for its minimalist, science-backed skincare and cosmetics products.
