Elf beauty to get Hailey Bieber brand rod without $ 1 billion deal

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Hailey Bieber, on May 17, 2023, England, England, in London, England, Chiltern Firebouse is attended by the Rhode UK launcher party.

Dave Benett | Dave Benett Collection | Getty pictures

Elf beauty Hailey Bieber’s beauty brand Rhode’s cosmetics company, announced on Wednesday, plans to sign up to $ 1 billion because it looks expanded for further skin care.

Accizment – ELF is the largest in the invitation, according to the performance of the Rhod in the next three years, an additional $ 800 million dollars with a $ 200 million payment. The transaction is expected to be closed in the second quarter of 2026 or at the end of this year.

“I have been in the consumer space for 34 years and have seen this brand in less than three years. “Thus, the level of disruption has definitely focused attention.”

In a news broadcast, Bieber said he was thrilled with his partner with Elf to bring his brand to “more facials, places and spaces.”

“From the first day, my vision for Rhode, the necessary skin care and hybrid makeup you can use every day,” said Bieber. “Only three years in this journey, our partnership with the beauty of Elf allows us to increase and accelerate our ability to achieve our society with more innovative products.”

ELF shares increased by 11% on Thursday after the company announces the acquisition of the fourth quarter and free results of the company. The company has exceeded the quarterly calculations of Wall Street, but did not offer management in terms of the changing tariff policy of the Trump Administration. ELF receives disproportionate amount of product from China.

On Thursday, Goldman Sachs analysts, Rhode deals, said they saw the ELF with a strategic positive because they serve the skin with the Prestige brand and diversified the customer base.

“Although Rhode is a DTC brand, we are expected to include retail, including Sephora, which will increase the progress,” he said.

Why bets on Elf Rhode

Rhode launched in 2022, doubled the customer base in the last year and reached $ 212 million in 12 months ending March 31.

As part of the purchase, Bieber will serve as head creativity and innovative head, creative, product innovation and marketing. The brand has two co-founders, Michael and Lauren Ratner, the effects of Bieber’s influence and the name of a billion dollars.

Under his leadership, Rhode last year, the number 1 of the earned media was the number 1 – or other methods of paid advertising – with 367% annual growth.

Rhode is a solid match for Elf, a large number of growth in a large part in recent years. The company has the legions of online fans and is known for the marketing of tiktok who felt more natural to consumers.

The company also wants to dee deep to treat all age groups, especially with a small and nuclear consumer of Elf. In 2023, this skin care brand took Naturium to $ 355 million. The purchase of Rhode will allow its skin care and reach the higher income consumers.

“ELF cosmetics, on average Rhode, in the 20s, this is the average of the United States, so I would say that we have brought us a common consumer, but how we attracted them and entertain them.”

The bargain has meaning to Elf and was a competitive action to twist the brand before competitors, but it comes to a vague and difficult time for the company. Even with the expected price increase, the Chinese tariffs will most likely reduce ELF’s earnings and high interest rates will be financed by $ 600 million at a time.

Procurement is a bet that consumers will continue to spend high-level skin during even potential economic slowdown or decline.

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