In a significant move within the beauty industry, model Hailey Bieber has announced the sale of her makeup brand, Rhode, to e.l.f. Beauty in a deal valued at up to $1 billion (£740 million). The 28-year-old, who is married to pop sensation Justin Bieber, co-founded the skincare brand in 2022, naming it after her middle name. The brand quickly gained traction, particularly online, and has seen substantial growth in a short period.
Rhode has reported impressive sales figures, achieving over $200 million in net sales in the 12 months leading up to March. This success can be attributed to its engaging product offerings, which include blush and lip tints, as well as its plans to expand distribution through Sephora stores in both the US and UK later this year. The rapid rise of the brand highlights the growing trend of celebrity beauty lines that capture the attention of consumers worldwide.
According to e.l.f. Beauty's announcement, the company views Rhode as a "beautiful brand" poised for "rocketship growth." The acquisition involves an upfront payment of $800 million in cash and stock, with an additional potential payout of $200 million tied to future sales performance. This deal is expected to finalize later this year, marking a major milestone for both brands.
Following the acquisition, Hailey Bieber will remain with Rhode as the Chief Creative Officer. In her statement on social media, she expressed excitement about this new chapter for the brand. “Our partnership with e.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally,” she stated, emphasizing her commitment to the brand's growth.
Hailey Bieber's venture into the beauty industry follows a trend set by other high-profile celebrities. Notably, Rihanna's Fenty Beauty was valued at nearly $3 billion last year, while Kylie Jenner sold a stake of her cosmetics company to Coty for $600 million in 2020. Additionally, Selena Gomez's Rare Beauty line has made significant financial strides, earning her a spot on the Bloomberg billionaire index last year. According to a recent report by Nielsen IQ, celebrity beauty brands collectively generated over $1 billion in sales in 2023.
Hailey Bieber, the daughter of actor Stephen Baldwin and niece of prominent actors Alec, William, and Daniel Baldwin, welcomed her first child with Justin Bieber last year. Reflecting on the unexpected success of the Rhode brand in a pre-announcement interview with Vogue, she remarked, “In my wildest dreams, it's already gone beyond what I would've hoped for.” This sentiment underscores her ambition and continued drive in the beauty industry.
