In a $1 billion transaction, E.l.f. Beauty will purchase Hailey Bieber’s skincare line Rhode

As the cosmetics company looks to further expand into skincare, E.l.f. Beauty announced on Wednesday that it would buy Hailey Bieber’s beauty brand Rhode for up to $1 billion.

According to FactSet, this is the largest acquisition E.l.f. has ever made and will consist of $800 million in cash and stock, with an additional $200 million payable based on Rhode’s performance over the next three years. The deal is anticipated to close in the second quarter of the company’s fiscal 2026, or later this year.

Following the company’s announcement of the purchase and the publishing of its fiscal fourth quarter results, E.l.f. shares surged more than 25% on Thursday. Despite exceeding Wall Street’s quarterly projections, the corporation refrained from providing guidance because of the shifting tariff policies of the Trump administration. China is the source of a disproportionate number of ELF’s products.

E.l.f. announced that its fiscal fourth quarter results exceeded Wall Street’s expectations on both the top and bottom lines. According to an LSEG survey of analysts, the beauty retailer’s performance was as follows: Revenue: $333 million vs. $328 million expected; Earnings per share: 78 cents adjusted vs. 72 cents expected; The company’s reported net income for the three-month period ending March 31 was $28.3 million, or 49 cents per share, compared with $14.5 million, or 25 cents per share, last year; sales increased to $332.7 million, up approximately 4% from $321.1 million.