Elf Beauty has acquired Hailey Bieber's Rhode skincare brand in a billion dollar deal.
Rhode had $212 million dollars (€186.71 million) in net sales in the 12 months that ended on March 31.
The company’s products are only available online, but by the end of this year it plans to begin an in-store partnership with Sephora in North America and the UK.
Bieber, 28, a model and the wife of singer Justin Bieber, will be Rhode’s chief creative officer and head of innovation – and also a strategic adviser to the combined companies.
She launched Rhode, which is her middle name, as a skin care line in June 2022 and has since expanded the brand to include blushes, coloured lip balms and lip liners.
The brand is popular with young consumers and other fans of Bieber’s fresh-faced, casual aesthetic, which has emerged as an alternative to the ultra-glam, heavily made up looks popularised by Kim Kardashian a decade ago.
Under the terms of the agreement, Elf will acquire Rhode for $600 million in cash and $200 million of newly issued shares of Elf Beauty common stock.
The deal also includes a potential payment of $200 million based on the future growth of the brand over three years.
Shares in Elf jumped 12% before the opening bell on Thursday.
Source: PA
