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The $1 billion sale of Hailey Bieber's Rhode Skin business to e.l.f. Beauty was made with the intention of "bringing rhode to more spaces, places, and faces globally."
The cosmetics company e.l.f. Beauty confirmed in a press release on May 28 that the 28-year-old has officially sold her Rhode Skin business to them for $1 billion.
In addition to an additional $200 million in potential earnout based on "future growth of the brand over a three-year timeframe," the release states that the acquisition consists of $800 million in cash and stock given to Rhode owners, including CEO Nick Vlahos, Bieber, and her cofounders Lauren Ratner and Michael D. Ratner, at the closing of the deal.
After the announcement, Hailey, who will continue to serve as Rhode's Chief Creative Officer and Head of Innovation in addition to serving as a strategic advisor for e.l.f., considered the success of her skincare brand since its launch in 2022 and the reasons why collaborating with e.l.f. felt like a natural fit.
"I always had big dreams for the company, and the most important thing to me is to keep bringing rhode to more spaces, places, and faces globally," Hailey wrote on Instagram on May 28. "So, today I am so incredibly excited and proud to announce that we are partnering with e.l.f. Beauty as we step into this next chapter in the world of rhode."
The model continued by describing the makeup brand as 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," adding that she is "excited and invigorated" about what she is doing next.
"Thank you to the amazing rhode team who have helped me build over the years," she continued. "Without all of you, I couldn't have succeeded. And to the people of Rhode Island, thank you for your unwavering support and for joining us on this journey. Together, we will make the next chapter even more amazing."
In a May 28 Instagram post announcing the deal, her cofounder Lauren echoed the sentiment, writing, "The last 5 years building @rhode has been one of the greatest experiences of my life."
"To our entire rhode community - thank you for your endless love and support for the brand," she said. "Every message, comment, and video that we see means a great deal to us. We are eager for you to see what we have in store for you.
Regarding e.l.f., the beauty brand shared details about the new heights they hope to reach through their collaboration with Rhode.
"We are excited by rhode's ability to break beauty barriers, fully aligning with e.l.f. Beauty's vision to create a different kind of company," e.l.f. Chairman and CEO Tarang Amin said in the release. "Rhode is a beautiful brand that we believe is ready for rocketship gro"
