e.l.f. Beauty has entered a definitive agreement to acquire the beauty brand rhode, founded by Hailey Rhode Bieber, in a deal valued at $1 billion. This acquisition aligns with e.l.f.'s vision of disrupting the beauty market and expanding its brand portfolio. The agreement comes after e.l.f. reported a decline in profits and weaker sales trends. Rhode has shown rapid growth, doubling its consumer base and generating $212 million in sales over the past year. The acquisition is structured with $800 million paid upfront and an additional potential $200 million based on future performance.
"e.l.f. Beauty found a like-minded disruptor in rhode," said e.l.f. chairman and CEO Tarang Amin. "rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible."
According to a press release sent to Fast Company, the deal is built on "both brands' shared focus on disruption and product innovation, setting the stage for transformative global expansion" and is in line with e.l.f. Beauty's vision "to create a different kind of beauty company by building brands that disrupt norms, shape culture and connect communities."
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