Hailey Bieber’s three-year-old cosmetics brand Rhode has officially been bought by E.l.f. Beauty in a $1 billion deal, the brand announced on Wednesday.

“E.l.f. Beauty found a like-minded disruptor in Rhode,” E.l.f. Chairman and CEO Tarang Amin said in a press release. “Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible. We are excited by Rhode’s ability to break beauty barriers, fully aligning with E.l.f. Beauty’s vision to create a different kind of company. Rhode is a beautiful brand that we believe is ready for rocketship growth.”

At closing, E.l.f. Beauty will acquire Rhode for $800 million ($600 million in cash and $200 million in newly issued shares). A potential earnout consideration of $200 million, based on Rhode’s growth over a three-year post-closing period, is also included in the sale. 

Since its launch in 2022, the skin-care brand has quickly become one of the industry’s buzziest ones to watch — as well as an impressively profitable business. In the last year alone, Rhode made a total of $212 million in net sales and doubled its consumer base, per the brand. It joins fellow celebrity brand Keys Soulcare (by Alicia Keys), Naturium and Well People as part of E.l.f. Beauty’s brand portfolio.

With the acquisition, Bieber will maintain her role and responsibilities as the brand’s founder, while also adding Chief Creative Officer and Head of Innovation to her titles. She will also serve as a Strategic Advisor to the combined companies.

“We can’t wait to bring Rhode to more faces, places and spaces. From day one, my vision for Rhode has been to make essential skin care and hybrid makeup you can use every day,” Bieber said in a statement. “Just three years into this journey, our partnership with E.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally.”

The news comes just one week after Sephora announced it would begin carrying the celebrity-backed brand in its U.S., U.K. and Canada retail locations. Rumors that Bieber was exploring a sale have been swirling since April, with Reuters reporting the founder had tapped investment bankers at JPMorgan Chase and Moelis in hopes of finding a buyer.

Rhode’s Co-Founders, Michael D. Ratner and Lauren Ratner, are set to remain in their executive roles and help lead the brand out of its Los Angeles offices. (The latter also serves as the brand’s president and chief brand officer.)

Bieber continued, “As I continue as Founder and step into an expanded role of Chief Creative Officer and Head of Innovation, I look forward to leading the brand into this exciting new chapter of possibilities alongside my Co-Founders Michael D. Ratner and Lauren Ratner, who have helped bring my vision to life from the start.”

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