Hailey Bieber, Rhode model’s Skincare Model and Skincare Model, is being captured by Elf Beuuty for about $ 1 billion, giving the budget cosmetic retail access to a line of products that has become extremely popular among General Z and Millennials.
ELF said on Wednesday that he would pay Rhode 800 million dollars in a combination of cash and shares and an additional possible consideration of earning $ 200 million subject to certain performance -related conditions.
Last month, Reuters reported that Bieber was exploring a brand sale, which could apply more than $ 1 billion.
For Elf, the agreement would mark a shift in the strategy and expand to the prestige bear market as the company faces poor demand from mass market customers who are pressure from high inflation.
“Rhode deal is a bold action for Elto Premium Beauty at a time when the prestige of the industry has lost part of its moment as a result of consumers who buy less or trading down,” said Sky Canavs, Emarketer analyst.
However, Rhode has captured this trend, Canavs added, with a strong buzz of Z and considerable about releasing its product, positioning it well for a strong expansion.
Elf – short for eyes, lips and face – offers valuable products as low as $ 2 on American retailers including Walmart, Ultha Beauty and Target.
On the other hand, the Rhode which began in 2022 and gained popularity with tiktok viral products such as its 18 $ 18 “peptide treatments”-say exclusively through its website or pop-up stores, relying heavily on the influence of Hailey Bieber’s social media.
“ELF Beiry marks a tremendous opportunity to raise and accelerate our ability to achieve our community more with even more innovative products and expand our distribution globally,” Bieber said.
The company competed at about $ 212 million for sale for the year ended on March 31 and is planning to start selling in Sevenhora stores across the US and Canada this fall, followed by the UK.
“Rhode further diversifies our portfolio with a quick brand of the group that makes the best of accessible prestige,” said CEO ELF Tarang Amin in a state.
Earlier this year, Elf’s shares tried 20% after the company trimmed its annual predictions and announced the weakening question.
The Elfode’s agreement with Rhode would mark its largest purchase so far and follows its $ 355 million buying company for Sourium skin in 2023.
Bieber will continue its role as a founder and will also act as a “strategic advisor” after the agreement is closed. The transaction is expected to close in the second quarter of 2026 fiscal.
Separately, the ELF on Wednesday declined to provide a second fiscal forecast for the uncertainty about import tariffs, despite defeating Wall Street’s expectations for fourth quarter sales.
The company, which derives about 75% of its products from China, from 100% in 2019, said last week it will raise prices by $ 1 to combat tariff pressure.
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