Hailey Bieber Sells Beauty Brand Rhode To Elf Beauty In $1 Deal

Hailey Bieber, wife of pop sensation Justin Bieber, has sold her beauty brand Rhode to Elf Beauty in a landmark deal valued at up to £1 billion. The agreement includes £640 million in cash and approximately £160 million in newly issued Elf shares, with an additional £200 million contingent upon future performance. Rhode, named after Bieber’s middle name, has achieved remarkable growth since its launch just three years ago.

Bieber co-created Rhode with the aim of delivering innovative beauty products, and the brand has since achieved net sales of £170 million in the year ending March 31. Speaking about the sale, Bieber stated, “This partnership with Elf Beauty is a phenomenal step forward, allowing us to expand our community faster and broaden global distribution with even more inventive products.”

The acquisition comes as Elf Beauty, a California-based cosmetics company listed on the New York Stock Exchange, eyes substantial growth through its integration of Rhode. Known for its net sales of over £800 million annually, Elf Beauty plans to fund the cash portion of the transaction through newly issued debt. The deal is expected to complete by the end of the year, strengthening Elf’s position in the competitive beauty market.

Rhode’s expansion plans are already underway, with its product line scheduled to launch in Sephora stores across the UK and US before the end of 2025. Bieber will remain integral to the company, taking on roles such as Chief Creative Officer, Head of Innovation, and Strategic Adviser to the combined entity. Tarang Amin, chairman and chief executive of Elf Beauty, praised Rhode as a “trailblazing brand poised for exponential growth.”

The deal mirrors similar moves among celebrity beauty entrepreneurs. Kylie Jenner previously sold a stake in her cosmetics line for £480 million, and Selena Gomez’s Rare Beauty generated revenues of £280 million in 2023. The growing trend demonstrates the lucrative potential of celebrity-backed beauty brands, with Rhode now firmly positioned for its next phase of global growth.

Elf’s acquisition of Rhode highlights the increasing dominance of innovative, celebrity-led beauty brands in the global cosmetics arena. Investors and industry experts alike will be watching closely as Rhode continues to build on its rapid success under the Elf Beauty umbrella.