NEW YORK (AP) — E.l.f. Magnificence has acquired Hailey Bieber’s Rhode skincare model in a $1 billion deal, the businesses mentioned.
Bieber’s Rhode had $212 million in web gross sales within the 12 months that ended March 31. The corporate’s merchandise are solely accessible on-line, however by the tip of this 12 months it plans to start an in-store partnership with Sephora in North America and the U.Okay.
Bieber, 28, a mannequin and the spouse of singer Justin Bieber, might be Rhode’s chief artistic officer and head of innovation and likewise a strategic advisor to the mixed firms.
She launched Rhode, which is her center identify, as a skincare line in June 2022 and has since expanded the model to incorporate blushes, coloured lip balms and lip liners.
The model is standard with younger shoppers and different followers of Bieber’s fresh-faced, informal aesthetic, which has emerged as a substitute for the ultra-glam, closely made up appears to be like popularized by Kim Kardashian a decade in the past.
Below the phrases of the settlement, E.l.f. will purchase Rhode for $600 million in money and $200 million of newly issued shares of E.l.f. Magnificence widespread inventory. The deal additionally features a potential cost of $200 million based mostly on the longer term development of the model over three years.
Shares of E.l.f., based mostly in Oakland, Calif., jumped 12% earlier than the opening bell Thursday.