Hailey Bieber, a model and social media influencer, is exploring a sale of her makeup brand Rhode that could be worth more than $1 billion, according to sources familiar with the matter. She has enlisted investment bankers from JPMorgan Chase and Moelis to help find a buyer for the brand, which she launched in 2022. Bieber joins a growing list of celebrities who are looking to capitalize on the success of consumer-focused ventures they have launched in recent years.
In 2021, actor Jessica Alba successfully completed an initial public offering for her consumer goods venture, The Honest Company. Similarly, Rare Beauty, supported by Grammy-nominated singer Selena Gomez, is also reportedly seeking a buyer. JPMorgan and Moelis, the investment banks involved in the sale of Rhode, declined to comment on the matter, while Rhode has yet to respond to requests for comment. The popularity of celebrity-backed consumer brands is evident, as more personalities strive to monetize their ventures successfully.
Hailey Bieber, the wife of singer Justin Bieber and daughter of actor Stephen Baldwin, boasts a massive following on social media, with over 50 million Instagram followers. Beauty trends such as “glazed donut skin” have gained popularity after Bieber promoted her daily skincare routine. Rhode, named after Bieber’s middle name, has generated annual revenue of nearly $200 million, according to sources. The Los Angeles-based brand specializes in skincare products and makeup, collaborating with companies like Krispy Kreme to promote certain products. Former The Honest Company CEO Nick Vlahos was appointed as Rhode’s CEO in the previous year.
The potential sale of Rhode highlights the growing interest in celebrity-backed consumer brands, as they continue to gain popularity and generate significant revenue. The involvement of investment banks like JPMorgan Chase and Moelis in the sale process emphasizes the brand’s value, with projections exceeding $1 billion. Bieber’s success as a social media influencer has undoubtedly contributed to the brand’s success, with her massive Instagram following driving significant interest in her beauty routine and products. Rhode’s collaboration with well-known companies further enhances its market presence and reputation.
With the success of ventures like The Honest Company and Rare Beauty, celebrity-backed consumer brands have demonstrated their ability to attract buyers and investors willing to pay a premium for these unique offerings. The willingness of celebrities like Hailey Bieber to explore sales of their brands signifies a growing trend in the consumer goods industry, where personalized and authentic products gain traction among consumers. Bieber’s decision to seek a buyer for Rhode reflects a strategic move to capitalize on the brand’s popularity and maximize its value in the market. As the beauty industry continues to evolve, celebrity-backed brands are likely to remain a prominent feature in the market landscape.
Overall, the potential sale of Hailey Bieber’s makeup brand Rhode represents a significant opportunity for investors and buyers looking to capitalize on the success of celebrity-backed consumer brands. With the brand’s annual revenue exceeding $200 million and endorsements from well-known personalities like Bieber and Selena Gomez, Rhode has established itself as a strong player in the beauty industry. The involvement of investment banks in the sale process further enhances the brand’s value and highlights its potential for future growth. As the beauty market continues to evolve, celebrity-driven brands like Rhode are likely to remain at the forefront, attracting consumers and investors seeking unique and authentic beauty products.
