e.l.f. Beauty Snaps Up Hailey Bieber's Rhode for $1 Billion: A Smart Move?

e.l.f. Beauty Acquires Hailey Bieber's Rhode Skin for $1 Billion In a significant move in the beauty industry, e.l.f. Beauty announced its acquisition of Rhode, the skincare brand founded by Hailey Bieber, for a staggering $1 billion. The deal underscores the growing market value of celebrity-endorsed beauty brands and e.l.f.'s strategic expansion. Rhode, launched in 2022, has quickly gained popularity among Gen Z consumers, boasting impressive net sales of $212 million in its last fiscal year. The brand's strong social media presence, with frequent sell-outs online, further highlights its market appeal. The acquisition is particularly noteworthy for e.l.f.'s supply chain diversification strategy. Currently, approximately 75% of e.l.f.'s products are manufactured in China. This acquisition provides access to Rhode's established supply network in Europe, the US, and other parts of Asia, mitigating risks associated with over-reliance on a single manufacturing region. e.l.f. CEO Tarang Amin stated, "e.l.f. Beauty's on fire, and we're further fueling that fire with the acquisition of Rhode." He emphasized the significant capacity of Rhode's supply chain, expressing confidence in the strategic synergy between the two brands. Bieber will continue her involvement with Rhode, taking on the roles of chief creative officer and head of innovation. This ensures the brand's continued creative direction and innovative product development. The acquisition represents a significant win for both companies, promising growth and expansion in the competitive beauty market.