Popular beauty business e.l.f. has announced that it is acquiring Hailey Bieber's skincare and makeup company, Rhode, in a deal that is potentially worth $1 billion (NZD $1.6B).
The deal, one of the largest celebrity beauty acquisitions to date, includes $600 million (NZD $1B) in cash, $200 million ($335 million) worth of e.l.f. Beauty stock ,and a potential $200 million ($335 million) in future payouts based on the company's growth over the next three years.
Bieber launched Rhode (which is her middle name) in Los Angeles in the summer of 2022 out of frustration with the overwhelming number of skincare products on the market.
She created Rhode to cut through the noise with "a very edited and curated, intentional shopping process for people", she told Forbes in 2022.
"I've been travelling around the world since I was 17, working and travelling on my own, going to different places and doing different shoots, so a lot of flying," the former model explained. "And that was something that made me think about what I would want in my carry-on bag."
The brand quickly went viral thanks in part to Bieber's celebrity as singer Justin Bieber's wife, including nearly 55 million Instagram followers.
Bieber will remain involved, according to the e.l.f. announcement, keeping her role as chief creative officer and head of innovation.
