The make-up and beauty brand E.L.F. – short for eyes, lips and face – has officially announced the acquisition of Rhode.
The recently published press release states that the agreement is “comprised of a consideration of $800 million payable at closing in a combination of cash and shares, subject to customary adjustments, and an additional potential earnout consideration of $200 million based on future growth of the brand over a three-year period”.
Elf is known for its super affordable products at US retailers such as Walmart, Ulta Beauty and Target.
Rhode – which launched in 2022 and became popular thanks to viral products on TikTok, such as its $18 “peptide lip treatments” – has so far sold exclusively through its website or pop-up shops, relying heavily on the popularity of its founder, Hailey Bieber.
The model and entrepreneur, who had long been waiting for an opportunity to expand her brand on the beauty market, left enthusiastic statements regarding the news.
“When you launch a brand, you focus on what’s in front of you at that moment,” Bieber recalls of Rhode’s early days. «And of course you always have very big dreams and goals. This is definitely one of those things that are coming true. I could never have believed that it would happen at this very moment.”
“We want to nurture Hailey’s vision, and that includes providing more resources and investing more in marketing,” added Tarang Amin, president and CEO of E.L.F., calling Bieber the most thoughtful founder he’s ever met. “She made up an incredible team that we want to continue to build and expand globally.”
Now that Rhode has joined the E.L.F. family, Hailey Bieber will still maintain an important and predominant role. «I will be Rhode’s creative director and chief innovation officer and consultant to E.L.F. Beauty», explains Bieber. «I feel that in this moment my vision has never been clearer. I want to expand globally and I have many other dreams and goals that I want to achieve. And I really believe that E.L.F. will help us reach them.”
At present, the agreement has been approved by the board of directors of E.L.F. Beauty and the transaction is expected to close next year.
Plus, as was announced just a week ago, Rhode will expand beyond its DirectToConsumer model this fall, hitting shelves (physical and digital) at Sephora.
