Elf Beauty to Buy Hailey Bieber’s Rhode Brand for $1 Billion (1)

Elf Beauty Inc. is acquiring Hailey Bieber’s Rhode beauty brand for $1 billion.

The deal is for $800 million in cash and stock, with an additional $200 million payout based on Rhode’s performance over three years, Elf said in a statement.

Elf Chief Executive Officer Tarang Amin said the acquisition will further diversify the cosmetics company’s portfolio, which includes brands such as Naturium and Well People. Rhode is ready for “rocketship growth,” he added.

Hailey Bieber

Photographer: Allison Zaucha/Bloomberg

Elf shares slipped 1.1% at 5:10 p.m. in extended trading in New York. The stock has declined 28% this year through Wednesday’s close. ...