Hailey Bieber’s makeup and skins model Rhode is receiving Elf Beauty for $ billion, giving the budget cosmetics retailer access to a line of products that has been very popular between Z gene and millennials.
ELF said Wednesday that he would pay $ 800 million Rhode shareholders in a combination of cash and actions and an additional consideration of potential $ 200 million gains subject to certain conditions related to performance.
Last month, Reuters reported that Bieber was exploring a brand sale, which could be worth more than $ 1 billion.
For ELF, the agreement would mark a change in strategy and expand to the prestigious beauty market, as the company faces a weak demand from massive market customers who are pressured by high persistent inflation.
“The Rhode Agreement is a daring movement for the ELF in premium beauty at a time when the industry’s prestige side has lost some of its impulse as a result of consumers buying less or commercialized,” said Sky Canaves, an emeketer analyst.
However, Rhode has affected this trend, added Canaves, with a strong zi gene a significant buzz around product launches, positioning -the good for a strong expansion.
ELF, short for eyes, lips and face, offers products with a low price as $ 2 to North -Americans, such as Walmart, Ulta Beauty and Target.
On the other hand, Rhode, which was launched in 2022 and gained popularity with Tiktok viral products, such as its $ 18 “Peptid’s lip treatments”, is sold exclusively through its own website or emerging shops, based on the influence of Hailey Bieber’s social networks.
“ELF BEAUY marks an incredible opportunity to raise and accelerate our ability to reach our community with even more innovative products and widen our distribution worldwide,” said Bieber.
The company obtained about $ 212 million in sales for the year ended on March 31 and plans to start selling at the SEPHOA stores in all the United States and Canada arriving this fall, followed by the United Kingdom.
“Rhode further diversifies our portfolio with a rapid growth brand that makes the best prestige accessible,” said ELF’s CEO, Tarang Amin, in a statement.
ELF’s shares early this year, it was 20% after the company would shorten its annual forecasts and warned to weaken the demand.
Rhode Elf treatment would mark its greatest acquisition so far and follow its $ 355 million acquisition from Skincare Naurium’s company in 2023.
Bieber will continue his role as a founder and will also act as a “strategic advisor” once the agreement is closed. The transaction is expected to close in the second quarter of 2026 prosecutor.
Separately, ELF Wednesday abstained from providing a 2026 tax forecast due to the uncertainty surrounding import rates despite exceeding Wall Street’s expectations for the fourth quarter sales.
The company, which causes about 75% of its products from China, dropping 100% ago in 2019, said that last week would increase prices by $ 1 to fight tariff pressure.
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