Cosmetics company E.l.f acquires Hailey Bieber’s Rhode beauty brand for $1 billion

New York (AP) – Elf Beauty acquired the Hailey Biege’s Rhode Skincare brand in a $ 1 billion deal.

Bieber’s Rhode had $ 212 million of net sales during the 12 months that ended to March 31. The company’s products are only available via the Internet, but by the end of this year, they plan to start a store in the store with Sephora in North America and the United Kingdom

Bieber, 28, will be the model and wife of singer Justin Bieber, the chief creative official in Road and the head of innovation and also a strategic consultant for companies combined.

Road, her middle name, was launched as a skin care line in June 2022, and the brand has since expanded the blush, colored lipstick and lippos.

The brand is popular with young consumers and other admirers of the unofficial fresh Bieber, which appeared as an alternative to the super Glam, and it seems that Kim Kardashian was popular with a decade ago.

Under the terms of the agreement, Elf will receive Rhode for $ 600 million in cash and $ 200 million in Elf Beauty Commun shares. The deal also includes a possible batch of $ 200 million based on the future brand’s future growth.

Elf, which means “eyes, lips and face”, began in 2004 as a trademark at reasonable prices whose products were initially sold on the Internet only. It has expanded in retail stores such as Target and has greater greater with social media trends highlighting less expensive versions of high -end products.

The company, based in Auckland, California, said on Wednesday that net global sales rose by 28 % to $ 1.3 billion during its financial year that ended in March. She will not provide financial guidelines for the current year: “Given the wide range of potential results related to definitions,” she said.

The policy of identifying the sources of virtues says that most of its products are made by suppliers in China, whose goods were subjected to a 145 % tariff for more than a month before president Donald Trump reduced the average to 30 %. On Wednesday, the brand advised the followers of X that she planned to increase the price of one dollar starting from August 1, but it was “monitoring the tariff situation with its development.”

Like Bieber’s Rhode, Elf says that its products are all vegetable and are not tested on animals before reaching consumers. Both brands are the patterns of their names with the first unofficial message.

“The camel dwarf has found a similar disruption in Road,” Tarang Amin, Chairman of the Board of Directors and CEO, said in a statement. “We are enthusiastic about Rudd’s ability to break the beauty barriers, as it is perfectly in line with the vision of Elf Beauty to create a different type of companies.”

Elf also owns Beau People, Skin Care Naturium and Keys Soulcare, a skin care line created by the singer and songwriter Alicia Keys.