Elf Beauty surges after buying Hailey Bieber's Rhode beauty brand for $1bn
Last updated: 14:53 29 May 2025 BST, First published: 14:46 29 May 2025 BST
Shares in e.l.f. Beauty Inc (NYSE:ELF) surged 25% after it snapped up Hailey Bieber's 'rhode' skincare brand in a deal that could reach $1 billion.
The brand, launched in 2022 and named after Bieber's middle name, has grown quickly through online popularity and TikTok buzz, generating over $200 million in sales in the past year. It is set to expand into Sephora stores across the US and UK.
Oakland, California-based e.l.f. will pay $800 million in cash and stock, with a further $200 million tied to future performance.
Bieber, the daughter of actor Stephen Baldwin and wife of popstar Justin Bieber, will remain chief creative officer following the sale, while the current leadership team stays in place.
The deal is expected to be completed later this year.
CEO Tarang Amin said "e.l.f. Beauty found a like-minded disruptor in rhode" that "further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible".
"We are excited by rhode’s ability to break beauty barriers, fully aligning with e.l.f. Beauty’s vision to create a different kind of company."
Rhode joins a growing list of celebrity-backed beauty ventures attracting big valuations. Fenty Beauty by Rihanna was estimated to have a valuation of around $2.8 billion by Forbes, Selena Gomez's Rare Beauty is estimated to have a valuation exceeding $1 billion, while Kim Kardashian launched a new SKKN brand after Coty acquired a 20% stake in her previous KKW Beauty brand for $200 million. Ariana Grande repurchased her r.e.m. brand for about $15 million in 2023 from Former Brands as it approached bankruptcy.
Shares in elf rose to $113.56 from their last close at $90.50.
** Update: Adds share price details **
