High-end skincare brand Rhode, owned by Hailey Bieber, fetches a massive sale price that exceeds our wildest financial imaginings.
Rhode, the explosive beauty brand that's turning heads and setting trends, is making history again after just three short years. In 2022, who would've thought selling this direct-to-consumer powerhouse was a dream instead of reality? But that's just what's happening as E.L.F. Beauty snaps up the brand.
The whopping $1 billion deal, while big news, hasn't exactly revealed the precise change in hands yet. But it's safe to say it's a hefty sum: The agreement entails an initial payment of $800 million - split between cash and stocks, subject to tweaks – with an additional potential bonus of $200 million contingent on Rhode's staggering growth over the next three years[1][3]. The E.L.F. Beauty board has already given the go-ahead, and the acquisition is slated to close next year.
Allure managed to get a chat with founder Hailey Bieber, who spilled the beans on what this means for Rhode. In short: expansion is on the horizon, a goal Bieber had in her sights from the start[2]. "Starting a brand is a tunnel vision kind of thing," Bieber reflects on Rhode's humble beginnings. "You're focused on the present, but you also have these grand aspirations. This deal is definitely one of those dreams becoming reality. I could never have anticipated it happening this soon."
E.L.F. Beauty, with its impressive portfolio that includes Keys Soulcare, Naturium, Well People, and powerhouse drugstore brand E.L.F. Cosmetics, is set to catapult Rhode's success[2].
As for Rhode's brand identity, it's looking like it'll stay true to itself. "We're all about nurturing Hailey's vision and investing more in marketing," says E.L.F. chairman and CEO Tarang Amin, who describes Bieber as the most thoughtful founder he's ever met[3]. "She's built an incredible team that we aim to grow and expand globally."
As Hailey Bieber, the founder of Rhode, expands her beauty brand with the latest $1 billion acquisition by E.L.F. Beauty, she discusses global growth and shared vision for the company. Bieber's endeavor into entrepreneurship and the development of Rhode's lifestyle-focused fashion-and-beauty brand is making significant strides in the financesphere, with this deal setting the stage for future successes in the business world.
