In a significant development within the beauty industry, model Hailey Bieber has announced the sale of her makeup and skincare brand, Rhode, to e.l.f. Beauty in a landmark transaction valued at $1 billion (£740 million). The deal is structured with an immediate cash and stock payment estimated at $800 million, with the potential for an additional $200 million based on future sales performance. This sale not only marks a major milestone for Rhode, which was launched in 2022 but also aligns with the growing trend of celebrity-led beauty brands.
Hailey Bieber, who has leveraged her influence as a public figure and her marriage to music artist Justin Bieber, co-founded the Rhode brand, which features a range of skincare products, including lip tints and blushes. The brand has achieved rapid growth, reporting net sales exceeding $200 million over the preceding year leading up to March. This impressive performance is attributed not only to its quality products but also to its burgeoning online presence and popularity on platforms such as TikTok. Furthermore, Rhode has established plans to expand its market reach, with distribution agreements set for major retail outlets, particularly Sephora stores in both the US and the UK.
The acquisition by e.l.f. Beauty, a well-known name in cosmetics defined by its reasonable pricing and wide accessibility, underscores the faith that industry veterans have in Rhode’s potential for future growth. In a public statement about the acquisition, e.l.f. Beauty referred to Rhode as “a beautiful brand that we believe is ready for rocketship growth,” emphasizing the brand’s aspects that captivate consumers.
Following the completion of this deal, which is anticipated to close by the end of the current year, Hailey Bieber will remain deeply involved in the company as its Chief Creative Officer. She expressed her excitement and optimism for the future of the brand through social media, highlighting the collaboration with e.l.f. Beauty as a considerable opportunity to enhance their innovative product offerings and broaden their distribution globally. The Rhode brand has already cultivated a vibrant community, showing promising signs for even greater expansion.
The momentum in celebrity beauty brands is undeniable, with Rhode joining the ranks of successful entities such as Fenty Beauty, founded by Rihanna, which was valued at nearly $3 billion last year. Other noteworthy examples include Kylie Jenner’s cosmetics brand, which received an influx of $600 million from Coty in 2020 and Selena Gomez’s Rare Beauty line, which contributed to her entry into the Bloomberg billionaire index.
The growing market for celebrity beauty lines is evident in a recent report by Nielsen IQ, which indicated that sales from celebrity cosmetics brands surpassed $1 billion in 2023 alone. Hailey Bieber, who comes from a well-known family with connections to Hollywood through her father, actor Stephen Baldwin, and her relatives Alec, William, and Daniel Baldwin, has already begun establishing her own legacy in the world of beauty. Her early success with Rhode has even taken her by surprise, as she expressed in a recent interview with Vogue, stating, “In my wildest dreams, it’s already gone beyond what I would’ve hoped for.”
As Rhode continues to expand and evolve under new ownership, all eyes will be on Hailey Bieber’s vision for the brand and how it integrates into the broader beauty industry landscape alongside other celebrity ventures. This sale undoubtedly marks not just a business transaction but a strategic pivot that could redefine the brand’s future trajectory and its reach within the saturated beauty market.
