E.l.f. Beauty has announced its acquisition of Hailey Bieber’s Rhode skincare brand in a $1 billion agreement, the companies revealed, as per The AP.
Rhode generated $212 million in net sales over the 12 months ending March 31. Currently, the brand’s products are sold exclusively online, but it plans to launch in-store partnerships with Sephora locations in North America and the U.K. by the end of this year.
Hailey Bieber, the model and wife of singer Justin Bieber, will take on the roles of Rhode’s chief creative officer, head of innovation, and strategic advisor for the combined companies.
The deal structure includes a $600 million cash payment and $200 million in newly issued shares of E.l.f. Beauty common stock. Additionally, there is a potential earnout of $200 million tied to Rhode’s future growth over the next three years.
