Hailey Bieber is selling her skincare and beauty company, Rhode, to e.l.f. Beauty for a whopping $1 billion.
The mega-deal announced on Wednesday involves $800 million in a combination of cash and stock as well as a potential additional payout of $200 million, depending on the brand’s performance during the next three years, according to a press release.
“I found a like-minded disruptor with a vision to be a different kind of company that believes in big ideas and innovation in the same way that I do and will help us continue to grow the brand,” the celebrity wrote in a post on Instagram.
Bieber announced she would now hold the titles of Rhode’s chief creative officer and head of innovation, and also serve as a strategic adviser to e.l.f.
“As I’ve said, this is only the beginning,” she added.
Tarang Amin, e.l.f. chairman and CEO, told CNBC he was impressed by what Bieber has been able to accomplish with the brand since its founding in 2022.
“I’ve been in the consumer space 34 years, and I’ve been blown away by seeing this brand over time. In less than three years, they’ve gone from zero to $212 million in net sales, direct-to-consumer only, with only 10 products,” he told the network. “I didn’t think that was possible.”
The deal will also help e.l.f. diversify its supply chain away from China amid the Trump administration’s trade war with Beijing. Amin told The Wall Street Journal that roughly 75% of his company’s products are currently made in China and therefore subject to steep tariffs.
e.l.f., a drugstore brand known for its affordability, announced earlier this week that it will be raising its prices by $1, starting on Aug. 1, citing inflation and tariffs as the main drivers of its decision. But e.l.f. noted that the vast majority of its products will stay below the $10 mark.
The deal comes nearly two months after Reuters reported that Bieber had hired J.P. Morgan Chase and Moelis to advise her on a potential sale.