In a landmark deal for a direct-to-consumer magnificence model, e.l.f. Magnificence introduced on Wednesday, Could 28, its plans to accumulate 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 by means of the web and social media, bypassing conventional intermediaries.
The model gained recognition with its reasonably priced, ’clear’ merchandise and a savvy advertising and marketing It was in a position to 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 skill to interrupt magnificence boundaries, absolutely aligning with e.l.f. magnificence’s imaginative and prescient to create a unique sort of firm. rhode is a gorgeous model that we consider 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 value the corporate as much as USD 50 million a 12 months.
E.l.f. Magnificence has agreed to accumulate rhode for USD 600 million in money and USD 200 of shares, plus an extra 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 web gross sales of USD 212 million for the twelve months ending March 31, 2025.
“Our partnership with e.l.f. Magnificence marks an unimaginable alternative to raise and speed up our skill to succeed in extra of our neighborhood with much more revolutionary 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’s going to stay concerned within the model’s improvement as Rhode’s Chief Inventive 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 recognized 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 12 months at Sephora in North America and the UK.
