Estée Lauder completes Deciem acquisition
Estée Lauder has completed its acquisition of Deciem Beauty Group.
The acquisition follows the company’s original investment in the Canadian-based brand in 2017 and increased stake to become a majority owner in 2021.
“Deciem and its brands embody the values of fearless persistence, uncompromising quality, and deep integrity that shape how we do business at The Estée Lauder Companies,” said William P. Lauder, executive chairman, ELC. “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.”
On May 31, Estée Lauder closed on purchasing the remaining interest by utilizing cash on hand for an estimated $860 million. The total investment, net of cash, is approximately $1,7 billion over the three tranches, the companies shared.
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“We are incredibly proud of what Deciem is accomplishing,” said Fabrizio Freda, president and chief executive officer, ELC. “In our seven years of partnership, Deciem has achieved impressive growth while continuing its core mission of reimagining effective, high-quality skin care for today’s diverse and sophisticated consumers. As a digitally native organization with a highly engaged following among millennial and Gen Z consumers, Deciem helps to strategically expand our skin care portfolio, and we believe there are many more exciting growth opportunities ahead.”
Known as the Abnormal Beauty Company, Deciem’s flagship brand includes The Ordinary, as well as Niod and Avestan.
“Deciem is an exceptional company with authentic brands, highly effective must-have products, and a uniquely transparent and engaging relationship with its devoted consumers around the world,” said Stéphane de La Faverie, executive group president, ELC. “We have enjoyed a fantastic partnership over the last seven years, and we are thrilled to continue our journey together.”
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"Today The Estée Lauder Companies becomes the forever home of Deciem,” said Nicola Kilner, co-founder and CEO of Deciem. “Our founder Brandon set out to disrupt the world of beauty, and this thinking has been embraced by ELC over the past seven years of our partnership. Their support, along with the energy of our incredibly talented team, has allowed us to strengthen our operational capabilities and enter new markets, while staying true to our founding values of transparency, quality, and authenticity."
