The Estée Lauder Companies (ELC) has completed its acquisition of the Canadian-based, multi-brand Deciem Beauty Group.
This acquisition follows ELC’s initial investment in Deciem in 2017, an increased stake to majority ownership in 2021, and now the purchase of the remaining interests as of May 31, 2024, for an estimated US$860 million ($1.3 billion). The total investment, net of cash, is approximately US$1.7 billion ($2.55 billion) across three installments.
Fabrizio Freda, President and CEO of ELC, expressed pride in Deciem’s accomplishments: “In our seven years of partnership, Deciem has achieved impressive growth while reimagining effective, high-quality skincare for today’s diverse consumers. As a digitally native organisation with a highly engaged following among millennial and Gen Z consumers, Deciem strategically expands our skincare portfolio.”
Nicola Kilner, Co-Founder and CEO of Deciem, echoed this sentiment: “Today, The Estée Lauder Companies becomes the forever home of Deciem. Our founder Brandon set out to disrupt the beauty world, and ELC’s support, along with our team’s energy, has allowed us to strengthen our operational capabilities and enter new markets while staying true to our founding values of transparency, quality, and authenticity.”
Deciem’s flagship brand, The Ordinary, is known as an industry disruptor, ranking top two in prestige skincare in Canada and the US, and top four in France, Germany, and the UK during the quarter ending March 31, 2024. With net sales between US$500 million and US$1 billion, the brand has expanded its consumer reach globally with recent launches in India, the Middle East, and South Africa.
Founded in 2013 by the late Brandon Truaxe, Deciem joined ELC with a portfolio that, aside from The Ordinary, includes Niod, and Avestan.
Stéphane de La Faverie, Executive Group President, ELC, remarked: “Deciem is an exceptional company with authentic brands, highly effective must-have products, and a uniquely transparent and engaging relationship with its devoted consumers. We have enjoyed a fantastic partnership over the last seven years, and we are thrilled to continue our journey together.”
William P Lauder, Executive Chairman of ELC, added: “We are grateful to the entire Deciem team for its leadership and hard work, and we are tremendously excited to see what we can continue to achieve together in the months and years ahead.”
Other brands in the ELC portfolio include Estée Lauder, Aramis, Clinique, Lab Series, Origins, M·A·C, La Mer, Bobbi Brown Cosmetics, Aveda, Jo Malone London, Bumble and bumble, Darphin Paris, Tom Ford, Smashbox, Aerin Beauty, Le Labo, Editions de Parfums Frédéric Malle, Too Faced, Dr.Jart+ and more.
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