Following e.l.f. Magnificence’s (e.l.f.’s) full FY2025 outcome announcement, which mirrored a web gross sales enhance of 28%, the corporate’s Chairman and CEO shared in a press assertion that “e.l.f. Magnificence discovered a like-minded disruptor in rhode,” who “additional diversifies our portfolio with a fast-growing model that makes the very best of status accessible.”
Below the phrases of the settlement, e.l.f. will purchase rhode for $800 million at closing, paid by means of a mix of $600 million in money and $200 million in newly issued shares of e.l.f. frequent inventory, with a further $200 million in potential earn-out funds contingent on future progress, in response to the corporate’s press launch.
Model profile and strategic enlargement
Based in 2022, rhode has established a popularity for minimalist, skin-first formulations and an environment friendly direct-to-consumer (DTC) mannequin. The model reported $212 million in web gross sales for the 12 months ended March 31, 2025, greater than doubling its shopper base previously 12 months, in response to e.l.f.’s press launch, and the acquisition marks e.l.f.’s newest transfer to scale its skincare presence, following its acquisition of Naturium in 2023.
Founder Hailey Bieber will stay concerned in the identical position whereas assuming further tasks as Chief Artistic Officer and Head of Innovation. “From day one, my imaginative and prescient for rhode has been to make important skincare and hybrid make-up you should use day-after-day,” stated Bieber in e.lf.’s press assertion.
“Our partnership with e.l.f. Magnificence marks an unimaginable alternative to raise,” she continued, “and speed up our skill to achieve extra of our group with much more modern merchandise and widen our distribution globally.”
rhode can even enter its first bodily retail partnership with Sephora later this 12 months, launching in shops throughout North America and the UK The model will proceed to function from its Los Angeles headquarters underneath the management of Bieber, Co-Founders Michael D. Ratner and Lauren Ratner, and CEO Nick Vlahos, e.l.f.’s announcement confirmed.
Digital momentum and creator-driven progress
The acquisition comes amid fast digital progress for each manufacturers. In accordance with information from software program firm Tubular Labs, rhode garnered 325 million TikTok views in 2024, and has already matched that quantity in 2025 by means of Might 27. e.l.f., in the meantime, noticed 326 million TikTok views in 2024 and 218 million up to now in 2025.
Regardless of their comparable engagement ranges, the manufacturers at present have restricted viewers overlap on TikTok, simply 10% for Bieber and 9% for rhode with e.l.f., indicating potential for incremental progress.
rhode has leaned extra closely on natural traction than paid sponsorships, executing simply 7 cross-platform sponsorships up to now in 2025, in comparison with e.l.f.’s 119, in response to Tubular Labs. Nevertheless, its affect is increasing by means of a quickly rising creator community.
Information from influencer advertising program software program firm Traackr reveals rhode’s creator group expanded from roughly 2,000 creators in 2022 to over 8,600 in 2024. The proportion of name consideration pushed by Bieber herself fell from 73% in 2022 to 14% in 2024, reflecting a strategic pivot towards scalable creator-driven advertising.
Traackr additionally reported an increase in creator loyalty, with common posts per creator growing from 2 in 2022 to over 5 in 2024. In the meantime, rhode’s content material efficiency, measured by the corporate’s Model Vitality Rating, rose from 6.9% to eight% throughout the identical interval.
The transfer positions e.l.f. to deepen its penetration of the status skincare market and develop retail partnerships past mass channels. “This acquisition strengthens our skill to ship breakout innovation whereas accelerating our worldwide and omnichannel progress,” Amin concluded within the press assertion.
