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E.l.f. Beauty is acquiring Hailey Bieber's skincare brand Rhode for $1 billion.

The deal will build on E.l.f's efforts to expand further into skincare and reach a higher-income consumer.

"I've been in the consumer space 34 years, and I've been blown away by seeing this brand over time. In less than three years, they've gone from zero to $212 million in net sales, direct-to-consumer only, with only 10 products. I didn't think that was possible," CEO Tarang Amin told CNBC in an interview.

E.l.f. Beauty announced on Wednesday plans to acquire Hailey Bieber's beauty brand Rhode in a deal worth up to $1 billion as the cosmetics company looks to expand further into skincare.

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