plowunited.net – Hailey Bieber has agreed to sell her makeup and skincare brand, Rhode, to e.l.f. Beauty. The deal is valued at up to $1 billion (£740 million), combining $800 million in cash and stock, with a potential additional $200 million based on future sales. The 28-year-old model and entrepreneur co-founded Rhode in 2022, naming it after her middle name. The brand quickly grew in popularity, driven by viral social media trends and strong online sales. This acquisition marks a major step for both Bieber and e.l.f., signaling big plans to expand Rhode’s presence globally.
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Rhode’s Rapid Growth and Popularity on Social Media
Since its launch, Rhode has seen impressive growth, reporting over $200 million in net sales in the 12 months leading up to March. The brand gained significant attention on social media platforms like TikTok, where users raved about Rhode’s pocket blush and peptide lip treatments. These viral moments helped build a loyal fan base, fueling demand and expanding Rhode’s reach. This year, Rhode plans to enter Sephora stores in the US and UK, increasing its accessibility to a wider audience. Bieber’s personal involvement and authentic connection with fans played a key role in Rhode’s success.
e.l.f. Beauty’s Vision and Deal Details
In the acquisition announcement, e.l.f. Beauty praised Rhode as “a beautiful brand ready for rocketship growth.” The deal will see e.l.f. pay $800 million upfront, with an additional $200 million contingent on Rhode meeting sales targets. e.l.f., known for affordable and trendy beauty products, aims to leverage its distribution network to scale Rhode internationally. The acquisition is expected to close later this year. Hailey Bieber will remain as chief creative officer, continuing to influence product development and brand vision. Other Rhode co-founders and executives will also stay on to maintain continuity.
Celebrity Beauty Brand Trends and Market Context
Hailey Bieber’s success with Rhode follows a larger trend of celebrities launching lucrative beauty lines. Rihanna’s Fenty Beauty, valued at nearly $3 billion, set a new standard for celebrity brands. Similarly, Kylie Jenner sold a stake in Kylie Cosmetics to Coty for $600 million, and Selena Gomez’s Rare Beauty earned her a place on the Bloomberg billionaire index. Celebrity beauty brands collectively generated over $1 billion in sales in 2023, demonstrating strong consumer interest. Bieber’s Rhode brand is now positioned to compete among these heavyweights as it scales with e.l.f.’s support.
Hailey Bieber’s Journey and Future Plans for Rhode
Hailey Bieber is no stranger to the spotlight, being the daughter of actor Stephen Baldwin and niece to Alec, William, and Daniel Baldwin. Married to singer Justin Bieber, she also became a mother last year. Despite her fame, Hailey has described Rhode’s success as exceeding even her wildest dreams. In a recent Vogue interview, she expressed excitement about the brand’s growth and its future. The partnership with e.l.f. marks a new chapter for Rhode, enabling it to innovate further and reach more customers worldwide. Fans can expect expanded product lines and greater availability soon.
