Hailey Bieber’s Rhode to be acquired for US$1 billion—here’s what it means
In what is regarded as one of the biggest celebrity beauty acquisitions in recent years, Hailey Bieber’s make-up and skincare label Rhode has just been sold for US$1 billion. Elf Beauty announced it signed a definitive agreement to acquire Rhode, a rapidly growing lifestyle beauty brand known for its collection of high-tech, everyday skincare products. According to a press release, the deal is “comprised of US$800 million of consideration payable at closing in a combination of cash and stock, subject to customary adjustments, and an additional potential earnout consideration of US$200 million” based on Rhode’s growth over the next three years. The news comes two months afterVogue Business reported that the brand hired investment banks JPMorgan Chase and Moelisto oversee the sale.
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Founded in 2022 by Bieber and her business partners, Michael Ratner and Lauren Ratner, Rhode launched with just three products as a direct-to-consumer brand that quickly rose to prominence among beauty enthusiasts and industry watchers. While its collection of ten products is considered modest compared to other celebrity beauty brands, a report in Business of Fashion stated that the brand managed to rake up US$212 million in net sales in the latest fiscal year ending in March 2025. Rhode recently announced its entrance into physical stores, starting with Sephora US and Canada stores and in Sephora UK by the end of the year.
It is no surprise that the brand quickly went viral due to Bieber’s influence that started various social media trends—from glazed donut nails to Erewhon smoothies. But those familiar with Rhode will know the products that truly shot the brand into superstardom are its Peptide Lip Treatment and the instantly recognisable Lip Case.
“When I launched Rhode in 2022, I always had big dreams for the company, and the most important thing to me is to keep bringing rhode to more spaces, places, and faces globally,” Bieber said in an Instagram post announcing the acquisition. “So today I am so incredibly excited and proud to announce that we are partnering with Elf Beauty as we step into this next chapter in the world of rhode.”
Elf Beauty chief executive officer and chairman Tarang Amin toldVogue Business that this new partnership is the “perfect marriage” for them. The American beauty group’s existing portfolio currently consists of skincare brand Naturium, singer Alicia Keys’s wellness brand, Soulcare, and makeup brand Well People.
While Bieber continues her role as founder of Rhode, she also takes on new titles: Chief Creative Officer and Head of Innovation of the brand as well as strategic advisor to Elf Beauty.
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In an industry saturated with celebrity beauty brands, Rhode’s success story showcases an interesting turn of events—especially since interest in brands fronted and owned by famous faces has faded. Brands like Jennifer Lopez’s JLo Beauty and Ariana Grande’s REM Beauty have struggled to take off, years after their respective debuts. Even Lady Gaga’s Haus Labs met with several challenges when it first launched, as it initially failed to achieve the same level of success as other celebrity beauty brands such as Rihanna’s Fenty Beauty and Selena Gomez’s Rare Beauty. Thankfully for Gaga, the brand underwent a major transformation in 2022 that paid off tremendously as its wildly popular Triclone Skin Tech Foundation became an award-winning product that has since garnered billions of views on TikTok.
Bieber’s decision to sell Rhode follows in the footsteps of fellow celebrity-turned-beauty entrepreneur Kylie Jenner, who sold a stake of her company, Kylie Cosmetics, in 2020 to Coty for US$600 million. However, Jenner was reportedly in talks to buy back the 51 per cent stake of her company from Coty, according to a Forbes report in August 2023.
In her interview with Vogue Business about Rhode’s sale, Bieber declared: “I want to be the biggest beauty brand in the world.”
As it turns out, she may well be on her way there.
And if you needed a little reminder of just how big of a deal this acquisition is, Rhode was founded less than three years ago.
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