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DEAL OF THE YEAR – $250 MILLION – $1 BILLION
BUYER: E.L.F. BEAUTY
SELLER: RHODE SKIN
DEAL TEAM: J.P. Morgan Securities LLC; Moelis & Company LLC; Skadden, Arps, Slate, Meagher & Flom LLP
Skadden is advising Hailey Bieber-owned skincare company rhode Skin on its $1 billion acquisition by e.l.f. Beauty. The $1 billion deal includes $800 million in consideration payable at closing, comprised of a combination of cash and stock (subject to customary adjustments,) and an additional potential earnout of $200 million based on the future growth of the brand over a three-year timeframe. This merger represents a strategic alignment, combining e.l.f.’s mass-market strength in makeup with rhode Skin’s emerging luxury skincare brand. This partnership allows both companies to tap into each other’s consumer bases, with e.l.f. expanding its presence in the skincare market and rhode Skin leveraging e.l.f.’s distribution network. The merger also opens the door to creating exciting opportunities for product innovation, particularly in hybrid beauty products that blend makeup and skincare, addressing the growing consumer demand for multitasking solutions. The celebrity influence of rhode Skin’s founder, Hailey Bieber, adds an additional layer of cultural relevance and potential for buzz-driven marketing campaigns. Together, the two brands are positioned to expand their market presence, drive innovation, and attract a wider demographic while retaining their distinct brand identities. Ultimately, the merger creates a unique fusion of affordability and luxury within the beauty industry positioning the companies for long-term growth. As Hailey Bieber, founder of rhode Skin, expressed, “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.”
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