Elf Beauty has taken over the Rhode skin cosmetics brand, which was created by Hailey Bieber. The value of the transaction is up to $ 1 billion. As part of a transaction worth $ 1 billion. This is so far the biggest takeover of the Elf (abbreviation comes from the words: “eyes, lips, face”), Educational purchase of the Naturium brand for skin care worth $ 355 million. in 2023
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As the Associated Press explains, Hailey Bieber reached net sales of $ 212 million. Within 12 months, which ended on March 31. The company's products are only available online, but by the end of this year it plans to start working with Sephora in North America and Great Britain.
28-year-old Bieber, model and wife of singer Justin Bieber, will be the creative director of Rhode and head of the innovation department, as well as a strategic adviser to combined companies.
The Rhode brand was introduced by the singer's wife in June 2022 as a skin care line and since then expanded the brand with roses, colorful lip balms and lip liner.
Hailey Bieber sold her company. The amount is stunning
The brand is popular among young consumers and other fans of fresh, free aesthetics promoted by Hailey Bieber, who appeared as an alternative to the Ultra-Glam, heavily painted stylizations popularized by Kim Kardashian a decade ago.
According to the terms of the contract, the elf will take over Rhode for $ 600 million. in cash and $ 200 million newly emitted ordinary elf actions. The contract also includes a potential payment of $ 200 million. Based on the future growth of the brand in three years.
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The elf started operating in 2004 as an inexpensive brand of makeup cosmeticswhose products were initially sold online. She expanded its activity to retail stores, such as Target, and developed with trends on social media, emphasizing cheaper versions of high -end products.
According to Associated Press, The company based in Oakland, California announced on Wednesday that global net sales increased by 28 percent. up to $ 1.3 billion In the financial year, which ended in March.
As the Associated Press reminds, the Elf is also the owner of the Well People cosmetics brand, Naturium skin care brands and Keys Soulcare, leather care lines created by the singer and the author of the lyrics Alica Keys.
