Hailey Bieber's makeup and skincare brand, Rhode, is being snapped up by Elf Beauty for about $1 billion US, giving the budget cosmetic retailer access to a celebrity-endorsed product line that has become hugely popular among Gen Z and millennials.

The deal would mark a shift in strategy and expand into the prestige beauty market as e.l.f. faces weak demand from mass market customers.

Oakland, Caliifornia-based e.l.f. Beauty (NYSE: ELF) has signed a definitive agreement to acquire Beverly Hills-based rhode, a lifestyle beauty brand founded by Hailey Bieber known for its collection of high-performance,