The Rhode, the beauty brand that has reached by the model and entrepreneur Hailey Bieber, was acquired by Elf Beauty for 800 million dollars in cash and in stock, a breathtaking sum for a line of eyeshadows and lip brightly that are not yet three years old.
In an industry cluttered with other brands of beauty to celebrities, Rhode has experienced rapid growth, which many attribute to the considerable influence of Ms. Bieber on social networks. (Ms. Bieber, a daughter of actor Stephen Baldwin and the pop star Justin Bieber’s wife, has 55 million followers on Instagram and 15 million on Tiktok.)
“Rhode has experienced exponential growth in the past three years due to deliberate decisions and the best marketing and community building,” Bieber said in a statement. “To continue to grow strategically, we need Elf Beauty’s partnership to fuel innovation and global expansion.”
In addition to the guaranteed payment of $ 800 million, the Elf agreement, which was announcement Wednesday, includes the potential of an additional $ 200 million, subject to rhode growth over the next three years. Rhode, which Mrs. Bieber founded with Lauren and Michael D. Ratner, said net sales of $ 212 million in the end, which ended on March 31.
According to Tarang Amin, Managing Director of Elf Beauty, the acquisition has been in preparation since October. Mr. Amin said that it was impatient to close on it to marry the fans of Gen Alpha that Mrs. Bieber stopped with millennials and consumers of the Z generation on which Elf was traditional.
Expansion includes a partnership with Sephora which will bring Rhode Products products for the first time in physical stores since the brand’s beginnings. But even without a coherent presence in brick and mortar stores, Rhode had built a base of fans that Mr. Amin found impressive.
