ELF Beauty is all set to acquire Rhode Beauty in a landmark deal valued at USD 1 billion, of which $600 million is in cash, $200 million in stock-payable at closing, and an additional $200 million payout on future expansions in three years. The acquisition comes just two months after JPMorgan Chase was brought on board to oversee the sales process.
Hailey Bieber, founder of Rhode Beauty, described the experience as a “really scary process,” but expressed confidence in the decision, noting that ELF Beauty is a strong brand with a “strong sense of community.” Hailey acknowledged ELF’s standout marketing efforts highlighting campaigns like Jennifer Coolidge’s appearance in the Super Bowl ad for Primer Grip Primer, and Meghan Trainor’s promotion of the Halo Glow Liquid and Powder Filter.
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e.l.f. Chairman and CEO Tarang Amin, is happy with this deal as it will help diversify the portfolio with a brand that is expanding at an exponential rate. He further added that Rhode Beauty has always been at the forefront when it came to breaking beauty barriers, which aligns with e.l.f. Beauty’s vision. Together, they aim to make waves in the beauty business. This is a huge deal for E.L.F., and is the third acquisition since it took over W3ll People, which is now known as Well People, in 2020, and Naturium, a skincare brand, in 2023.
Following the acquisition, Bieber will retain her role as founder and take on expanded responsibilities as Rhode’s chief creative officer and head of innovation.
