Elf Beauty has announced its acquisition of Rhode, Hailey Bieber's makeup and skincare line, for around $1 billion. The deal, which includes $800 million in cash and stock, plus a potential earn-out of $200 million, allows Elf to access a brand popular among Gen Z and millennials, as demand in mass market cosmetics wanes. Rhode, known for its viral products, launched in 2022 and generated $212 million in sales. The acquisition signifies Elf's shift toward prestige beauty, particularly as it faces challenges in the budget segment due to inflation.
"Elf 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," Bieber said.
"Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible," Elf CEO Tarang Amin said in a statement.
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