E.L.F. Cosmetics is turning into the new Estee Lauder and Lancome with purchases of beauty brands left and right. Currently, E.L.F Cosmetics owns Keys Soulcare, Well People and NATURIUM and will be adding one major player to their portfolio this month to the tune of 1 billion dollars.
That’s right, E.L.F. Cosmetics is purchasing Haily Bieber’s skincare brand for 1 billion dollars. E.L.F. made the official announcement yesterday and just days before there was news that Rhode was coming to Sephora shortly. This is E.L.F.’s biggest investment to date. The deal is comprised of $800 million in cash and stock with an addtional $200 million payout based on Rhode’s performance over the next three years. The deal will close in the second quarter or could happen as soon as later this year. E.L.F.’s stocks soared after the announcement and are up 11% today.
Rhode in it’s infancy but in three years time they are doing $212 million in net sales. They may not seem a lot but keep in mind Rhode’s catalog is very, very small. They have around nine to ten products most of which are skincare. I imagine they’ll expand further into color cosmetics once this deal is inked.
“From day one, my vision for rhode has been to make essential skin care and hybrid makeup you can use every day,” said Bieber. “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.”
I happen to be a very big fan of Rhode and I’ll readily admit this news makes me nervous. Formulas change, prices change, a lot changes when someone like E.L.F. steps in. I imagine Hailey will stay out with the brand for a while but at some point she’ll step down and the brand will likely head into a completely different direction. Speaking of price changes E.L.F. is set to raise their prices soon so stock up on your favs while you can.
How do we feel about Rhode Beauty being sold to E.L.F. Cosmetics? Share your thoughts!
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