Hailey Bieber’s beauty brand rhode has been sold to budget makeup powerhouse e.l.f. Beauty for US$1 billion (A$1.56 billion).

It’s e.l.f.’s largest acquisition to date, eclipsing its US$355 million (A$552 million) purchase of skin care brand Naturium in 2023.

Established in 2022, Bieber’s brand achieved US$212 million (A$330 million) in net sales during its most recent fiscal year, concluding in March. Earlier this year, rhode revealed that its products would be available in-store at Sephora locations across North America and the United Kingdom.

Bieber is set to take on the roles of rhode’s chief creative officer and head of innovation, according to the company. She is the brand’s founder and the current creative director.

With an impressive social media presence, alongside Bieber’s own digital platform both prior to and following her marriage to singer Justin Bieber, rhode “possesses a robust engagement model,” e.l.f. noted during its earnings call following the announcement on Wednesday. Fans frequently spend hours waiting in line for rhode pop-ups, while its products often sell out on its website.

“One of the things we really like about rhode is just how tight the product assortment is. It’s only 10 products across skincare, colour cosmetics and accessories,” CEO Tarang Amin said in the same earnings call.

The massive acquisition comes as e.l.f. is at a crossroads with President Donald Trump’s chaotic tariff war with China. As of mid-May, about 75 percent of its global production came from China and is now subject to tariffs of 55 percent, including the tariffs put in place in 2019, the company said in its Wednesday earnings.

E.l.f. also did not issue guidance for this fiscal year because of uncertainty around tariffs.

But it is still sticking by its production model.

“We believe our unique China-based supply chain is an area of competitive advantage we’ve been honing for the past 21 years… (We) are committed to our China team and suppliers,” the company said in its Wednesday earnings call.

The rhode deal consists of US$800 million (A$1.2 billion) in cash and stock, and potentially another US$200 million (A$311 million) based on how rhode performs over the next three years. It’s expected to close later this year.