E.l.f. Beauty Secures Rhode Brand in Historic $1B Acquisition
E.l.f. Beauty made headlines on Wednesday with news of its $1 billion deal for Rhode, a new purchase and the biggest in their company’s history. The new deal adds one of Gen Z’s most beloved beauty brands to the budget-focused cosmetics company. Rhode has quickly become a preferred brand for young people mostly because of Bieber’s influence and how the company promotes itself. Oakland-based e.l.f. is strengthening its premium line with the acquisition and reaching a loyal group of Rhode’s customers.
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Bieber will hold both the posts of Chief Creative Officer and Head of Innovation with the new structure, so the brand will not change its essence. The model and entrepreneur will supervise making the products, setting their style and creating marketing plans for e.l.f., in addition to giving advice about the company’s broader strategies. The deal is higher than e.l.f.’s last important purchase of Naturium which was for $355 million, proving the company’s determined effort to expand. As a result of the deal, e.l.f. can profit from the rising popularity of celebrity cosmetics among these age groups.
These experts feel that the deal allows e.l.f. to sell Rhode’s products while benefiting from Rhode’s famous name and big social media following.
