In a landmark deal for a direct-to-consumer magnificence model, e.l.f. Magnificence introduced on Wednesday, Might 28, its plans to amass rhode — the make-up and skincare line based by mannequin and entrepreneur Hailey Bieber — in a transaction valued at USD 1 billion.
E.l.f. was among the many first wave of direct-to-consumer (DTC) magnificence manufacturers, launching on-line within the early 2000s. Its core technique: forging direct relationships with customers via the web and social media, bypassing conventional intermediaries.
The model gained reputation with its inexpensive, ’clear’ merchandise and a savvy advertising and marketing It was capable of amplify by influencer partnerships.
“e.l.f. Magnificence discovered a like-minded disruptor in rhode,” mentioned e.l.f. Chairman and CEO Tarang Amin. “rhode additional diversifies our portfolio with a fast-growing model that makes one of the best of status accessible. We’re excited by rhode’s means to interrupt magnificence limitations, absolutely aligning with e.l.f. magnificence’s imaginative and prescient to create a special type of firm. rhode is a good looking model that we imagine is prepared for rocketship development.”
E.l.f. is making the most important acquisition in its historical past at a time when tariffs on Chinese language imports are placing strain on its enterprise. In its quarterly outcomes, additionally launched Wednesday, the corporate withheld steering for the present quarter, citing uncertainty round tariffs imposed by the Trump administration.
Tarang Amin defined that 75% of e.l.f.’s manufacturing comes from China, and that tariffs might price the corporate as much as USD 50 million a yr.
E.l.f. Magnificence has agreed to amass rhode for USD 600 million in money and USD 200 of shares, plus a further potential earnout consideration of USD 200 million primarily based on rhode’s efficiency over the following three years.
The acquisition value represents roughly 3.8 instances rhode’s internet gross sales of USD 212 million for the twelve months ending March 31, 2025.
“Our partnership with e.l.f. Magnificence marks an unbelievable alternative to raise and speed up our means to succeed in extra of our group with much more modern merchandise and widen our distribution globally,” commented Hailey Bieber.
With over 50 million Instagram followers, Hailey Bieber — daughter of actor Stephen Baldwin — has modeled for main manufacturers together with Ralph Lauren and Tommy Hilfiger. She is going to stay concerned within the model’s improvement as Rhode’s Chief Artistic Officer and Head of Innovation, alongside co-founders Michael D. Ratner and Lauren Ratner.
Based three years in the past, her model makes a speciality of high-end skincare and make-up, and is especially identified for its “liptint” tinted lip balms.
Rhode is anticipated to launch its merchandise in brick-and-mortar shops for the primary time by the tip of the yr at Sephora in North America and the UK.
