Hailey Bieber has officially sold her cosmetics line, Rhode, to Elf Beauty in a transaction valued at up to $1 billion.

The model, married to pop star Justin Bieber, has entered into an agreement that combines cash and stock, roughly amounting to $800 million, with an additional potential payout of $200 million depending on the brand’s future performance.

Rhode, which Bieber launched three years ago using her middle name, achieved net sales of $212 million for the year ending March 31.

Bieber remarked, “Just three years into this journey, our partnership with Elf Beauty represents an amazing chance to enhance our outreach and expand our innovative product lineup while increasing our global distribution.

Currently, Rhode markets its products directly through its website, with plans to initiate sales through Sephora locations in the US and the UK by the close of 2025.

Bieber, daughter of actor Stephen Baldwin, will remain involved with Rhode as its chief creative officer and head of innovation, and will also serve as a strategic advisor for the merged entities.

Tarang Amin, chairman and CEO of Elf Beauty, expressed enthusiasm for Rhode’s potential, stating, “We are thrilled by Rhode’s ability to break beauty barriers, which aligns perfectly with Elf Beauty’s mission to redefine the industry. Rhode is an exceptional brand poised for significant growth.”

Elf Beauty, publicly traded on the New York Stock Exchange, was established in 2004 and is headquartered in California, with an additional office in London. The company generates over $1 billion in annual net sales.

For the acquisition of Rhode, Elf Beauty will disburse $600 million in cash along with approximately 2.6 million newly issued shares valued at about $200 million. The cash payment will be financed through new debt taken on by Elf, with the deal expected to finalize by the end of the year.

Bieber joins a growing list of celebrities who have successfully ventured into the beauty industry, following stars like Kylie Jenner, who in 2019 sold a stake in her cosmetics brand to Coty for $600 million, and Selena Gomez, whose Rare Beauty generated $350 million in revenue in 2023.