The Makeup and Skincare brand of Model Hailey Bieber is being purchased by ELF Beauty for about $ 1 billion, giving the cosmetic retailer access to a celebrity -ended product line that has become popular among generation Z and millennials consumers.
The ELF reported on Wednesday that it will pay Rhode shareholders US $ 800 million in a combination of money and shares, as well as an additional US $ 200 million potential, subject to certain performance-related conditions.
Last month, Reuters reported that Hailey explored selling the brand, which could be worth more than $ 1 billion.
For the ELF, the agreement marks a change in strategy and an expansion to the prestigious beauty market, as the company faces a weak demand from mass market customers, which are being pressured by persistently high inflation.
The ELF – abbreviation of Eyes, Lips and Face (eyes, lips and face) – offers products from $ 2 at US retail stores such as Walmart, Ulta Beauty and Target.
On the other hand, Rhode-launched in 2022 and which has gained popularity with Tiktok’s viral products, such as its $ 18 “lip treatments”-sells exclusively through its own site or pop-up stores, strongly supported by Hailey’s influence on social networks.
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“Elf Beauty marks an incredible opportunity to raise and accelerate our ability to achieve more of our community with even more innovative products and expand our distribution globally,” said Hayley.
The company sold about $ 212 million in the fiscal year ended March 31 and plans to start selling at US and Canada’s sephora stores followed by the United Kingdom.
The model will maintain its functions as a founder and will also act as a “strategic consultant” after the completion of the business. The transaction is expected to be completed in the second quarter of the 2026 fiscal year.
