As celebrity brands boom, Hailey Bieber’s rhode announced it will be acquired by e.l.f. Beauty for as much as $1 billion. The consideration consists of $800 million at closing in a mix of cash and equity, along with an earn out of up to $200 million based on the growth metrics over the next three years.
Bieber brought star power to cosmetics, catapulting the growth of the company she founded in 2022. “Bieber will continue her role as Founder and additionally serve as rhodes Chief Creative Officer and Head of Innovation, overseeing creative, product innovation and marketing,” according to the deal’s press release. “A defining voice in beauty, Bieber stands out as a cultural tastemaker and top beauty influencer. Her influence, paired with the brands innovative marketing strategy and team, fueled rhode to be the No. 1 skin care brand in Earned Media Value in 2024, representing 367% year over year EMV growth.”
Source: Cosmetify
Prior to her business success, Bieber was an accomplished model. She is the daughter of actor Stephen Baldwin and married to popstar Justin Bieber and has harnessed her celebrity status to bring widespread attention to her beauty line. Named after Bieber’s middle name, rhode focuses on cosmetics that nourish the skin while enhancing beauty without a long application routine.
Celebrity brands are big business. Sales from celebrity beauty brands reached $1 billion by 2023 and rose by 7% to $1.2 billion in 2024. From Alicia Keys to Brad Pitt to Selena Gomez, actors and musicians have converted their fame into business success. By adding their name, face, and media savvy to products, a celebrity can often jumpstart funding, and catapult brand recognition overnight. The following chart depicts celebrities varying levels of success in translating their status into business branding.
Source: Kearny
“For consumer product brands across categories, celebrity founded companies are noticeably outperforming deals and funding metrics of traditional players,” according to Flxpoint. “And they are expanding ideas of business growth timelines in the process. Where industry standards once required gradual scaling before profitability, celebrity brands are showing the possibility of fast expansion and lightning fast returns.”
According to DealPulse’s M&A database, which harnesses both AI and attorneys to digest the granular deal points of publicly-announced transactions, elf is advised by law firm
Latham & Watkins LLP. rhode is advised by Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates.
