Tarang Amin on e.l.f cosmetics e-commerce development
E.l.f. Magnificence not too long ago signed a definitive settlement to amass celeb skincare model Rhode, based by Hailey Bieber, in a $1 billion megadeal.
The settlement consists of $800 million of consideration payable at closing in a mixture of money and inventory, topic to customary changes, and a further potential earnout consideration of $200 million based mostly on the longer term development of the model over a three-year timeframe.
“e.l.f. Magnificence discovered a like-minded disruptor in rhode,” e.l.f. Chair and CEO Tarang Amin wrote in an announcement. “rhode additional diversifies our portfolio with a fast-growing model that makes one of the best of status accessible. We’re excited by rhode’s skill to interrupt magnificence limitations, totally aligning with e.l.f. Magnificence’s imaginative and prescient to create a unique form of firm. rhode is an exquisite model that we imagine is prepared for rocketship development.”
Bieber’s model, centered round her skincare philosophy of “one in every of every little thing actually good,” greater than doubled its shopper base over the previous 12 months and drove a complete of $212 million in web gross sales within the 12 months ending March 31, 2025.
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E.l.f. Magnificence Chair and CEO Tarang Amin and Rhode founder Hailey Bieber (e.l.f. Magnificence/Fox Information)
Although Rhode’s merchandise are at the moment solely supplied on rhodeskin.com, e.l.f. introduced plans to launch a bodily in-store partnership with retailer Sephora all through North America and the U.Ok. this 12 months.
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Bieber will proceed her position as founder and function Rhode’s chief inventive officer and head of innovation, overseeing inventive, product innovation and advertising.
She may also act as a strategic advisor to the mixed firms.
Hailey Bieber, proven with husband and singer Justin Bieber, launched Rhode in June 2022. (Kevin Mazur/Getty Photos for Roc Nation)
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Rhode was the No. 1 skincare model in earned media worth (EMV) in 2024, representing 367% year-over-year EMV development.
“We will’t wait to deliver rhode to extra faces, locations, and areas,” Bieber wrote in an announcement. “From day one, my imaginative and prescient for rhode has been to make important skincare and hybrid make-up you need to use each day. Simply three years into this journey, our partnership with e.l.f. Magnificence marks an unimaginable alternative to raise and speed up our skill to achieve extra of our neighborhood with much more progressive merchandise and widen our distribution globally… I sit up for main the model into this thrilling new chapter of potentialities alongside my Co-Founders Michael D. Ratner and Lauren Ratner, who’ve helped deliver my imaginative and prescient to life from the beginning.”
Co-founders Michael D. Ratner and Lauren Ratner and CEO Nick Vlahos will proceed to steer the model out of the corporate’s workplace in Los Angeles.
Rhode is predicted to launch its first bodily in-store partnership with retailer Sephora all through North America and the U.Ok. this 12 months. (Paul Weaver/SOPA Photos/LightRocket/Getty Photos)
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E.l.f. Magnificence, a finances drugstore magnificence model based in 2004, is the No. 1 model in items throughout U.S. cosmetics and No. 2 in greenback share.
The corporate launched e.l.f. SKIN 5 years in the past as its personal model to speed up its potential in skincare and bought Naturium in 2023, doubling the corporate’s skincare presence.
| Ticker | Safety | Final | Change | Change % |
|---|---|---|---|---|
| ELF | E.L.F. BEAUTY INC. | 90.45 | -1.33 | -1.45% |
Beneath the phrases of the definitive settlement, e.l.f. Magnificence agreed to amass Rhode for $800 million at closing, comprised of $600 million of money and $200 million, or about 2.6 million shares, of newly issued shares of e.l.f. Magnificence widespread inventory issued to present fairness holders of Rhode, topic to sure customary buy worth changes.
The transaction, which is predicted to shut within the second quarter of fiscal 2026, consists of a further potential earnout consideration of $200 million, based mostly on the longer term development of the model over a three-year post-closing interval. The acquisition worth at closing represents about 3.8x LTM web gross sales of $212 million on March 31.
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Money issues include totally dedicated debt financing of $600 million. A portion of the shares issued within the transaction to the founders and sure key workers are topic to lockup agreements and might be launched from the lockup over a one-year interval.
