e.l.f. Magnificence to develop status portfolio and creator-driven attain through $1bn rhode acquisition

Following e.l.f. Magnificence’s (e.l.f.’s) full FY2025 outcome announcement, which mirrored a internet gross sales enhance of 28%, the corporate’s Chairman and CEO shared in a press assertion that “e.l.f. Magnificence discovered a like-minded disruptor in rhode,” who “additional diversifies our portfolio with a fast-growing model that makes the most effective of status accessible.”

Beneath the phrases of the settlement, e.l.f. will purchase rhode for $800 million at closing, paid by means of a mixture of $600 million in money and $200 million in newly issued shares of e.l.f. frequent inventory, with a further $200 million in potential earn-out funds contingent on future progress, in line with the corporate’s press launch.

Model profile and strategic growth

Based in 2022, rhode has established a status for minimalist, skin-first formulations and an environment friendly direct-to-consumer (DTC) mannequin. The model reported $212 million in internet gross sales for the 12 months ended March 31, 2025, greater than doubling its shopper base prior to now yr, in line with e.l.f.’s press launch, and the acquisition marks e.l.f.’s newest transfer to scale its skincare presence, following its acquisition of Naturium in 2023.

Founder Hailey Bieber will stay concerned in the identical position whereas assuming further obligations as Chief Inventive Officer and Head of Innovation. “From day one, my imaginative and prescient for rhode has been to make important skincare and hybrid make-up you need to use each day,” mentioned Bieber in e.lf.’s press assertion.

“Our partnership with e.l.f. Magnificence marks an unbelievable alternative to raise,” she continued, “and speed up our potential to achieve extra of our neighborhood with much more progressive merchandise and widen our distribution globally.”

rhode can even enter its first bodily retail partnership with Sephora later this yr, launching in shops throughout North America and the UK The model will proceed to function from its Los Angeles headquarters underneath the management of Bieber, Co-Founders Michael D. Ratner and Lauren Ratner, and CEO Nick Vlahos, e.l.f.’s announcement confirmed.

Digital momentum and creator-driven progress

The acquisition comes amid fast digital progress for each manufacturers. In response to knowledge from software program firm Tubular Labs, rhode garnered 325 million TikTok views in 2024, and has already matched that quantity in 2025 by means of Could 27. e.l.f., in the meantime, noticed 326 million TikTok views in 2024 and 218 million up to now in 2025.

Regardless of their related engagement ranges, the manufacturers presently have restricted viewers overlap on TikTok, simply 10% for Bieber and 9% for rhode with e.l.f., indicating potential for incremental progress.

rhode has leaned extra closely on natural traction than paid sponsorships, executing simply 7 cross-platform sponsorships up to now in 2025, in comparison with e.l.f.’s 119, in line with Tubular Labs. Nonetheless, its affect is increasing by means of a quickly rising creator community.

Knowledge from influencer advertising and marketing program software program firm Traackr reveals rhode’s creator neighborhood expanded from roughly 2,000 creators in 2022 to over 8,600 in 2024. The proportion of brand name consideration pushed by Bieber herself fell from 73% in 2022 to 14% in 2024, reflecting a strategic pivot towards scalable creator-driven advertising and marketing.

Traackr additionally reported an increase in creator loyalty, with common posts per creator growing from 2 in 2022 to over 5 in 2024. In the meantime, rhode’s content material efficiency, measured by the corporate’s Model Vitality Rating, rose from 6.9% to eight% throughout the identical interval.

The transfer positions e.l.f. to deepen its penetration of the status skincare market and develop retail partnerships past mass channels. “This acquisition strengthens our potential to ship breakout innovation whereas accelerating our worldwide and omnichannel progress,” Amin concluded within the press assertion.