Hailey Bieber is selling her beauty brand in a deal worth up to $1 billion.
The 28-year-old model has announced that she's selling Rhode, the brand she founded in 2022, to e.l.f. Beauty after reaching an agreement with the cosmetics company.
Hailey - who will remain with the company as the chief creative officer - said in a statement: "From day one, my vision for Rhode has been to make essential skin care and hybrid make-up you can use every day.
"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."
Tarang Amin, the CEO of e.l.f. Beauty, has been impressed by Rhode's growth in a relatively short period of time.
He told CNBC: "I’ve been in the consumer space 34 years, and I’ve been blown away by seeing this brand over time. In less than three years, they’ve gone from zero to $212 million in net sales, direct-to-consumer only, with only ten products. I didn’t think that was possible.
"So that level of disruption definitely caught our attention."
e.l.f. Beauty hopes that the acquisition will help the company to connect to younger consumers.
Amin explained: "E.l.f. cosmetics is about $6.50 in its core entry price point, Rhode, on average, is in the high 20s, so I’d say it does bring us a different consumer set to the company overall, but the same approach in terms of how we engage and entertain them."
Meanwhile, Hailey recently confessed to being surprised by the success of her brand.
The model never imagined that Rhode would be able to achieve so much in just three years.
Hailey - who is married to pop star Justin Bieber - told Vogue: "I never, ever thought or expected it to turn into this. In my wildest dreams, it’s already gone beyond what I would’ve hoped for."
Rhode's president, Lauren Ratner, also claimed that Hailey was central to the brand's success.
She said: "The number-one reason for Rhode’s success is Hailey.
"I think the consumer is really smart, and really understands authenticity."
