Hailey Bieber’s skin care brand Rhode is being acquired by e.l.f. Beauty in a deal valued at up to $1 billion, the companies announced.

The agreement marks a major expansion into the prestige beauty space for e.l.f., known for its affordable cosmetics.

Rhode, launched by Bieber in 2022, has quickly become a breakout success, with more than $212 million in net sales over the past year.

As part of the deal, Bieber will take the role of chief creative officer and head of innovation. She will also serve as a strategic advisor to the combined companies.

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“Just three years into this journey, our partnership with e.l.f. marks an incredible opportunity to reach more of our community with even more innovative products,” Bieber said in a statement.

Under the agreement, e.l.f. will pay $800 million at closing, $600 million in cash and $200 million in stock, plus an additional $200 million in potential earnout payments based on Rhode’s performance over the next three years. The deal is expected to close in the second quarter of fiscal 2026, pending regulatory approval.

Rhode, which sells directly to consumers online, is preparing for its first in-store launch with Sephora later this year.