Estée Lauder completes Deciem acquisition for $1.7bn

By Cassandra Stern

- Last updated on GMT

 "Today, The Estée Lauder Companies becomes the forever home 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," said Nicola Kilner, Co-Founder and CEO of DECIEM.  © Guido Mieth Getty Images
"Today, The Estée Lauder Companies becomes the forever home 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," said Nicola Kilner, Co-Founder and CEO of DECIEM. © Guido Mieth Getty Images

Related tags Estée lauder companies acquisition Skin care

The Estée Lauder Companies Inc. has completed its acquisition of Deciem Beauty Group Inc., enhancing its skincare portfolio with the Canadian company's innovative, transparency-focused brands, including its flagship brand, The Ordinary, for a total investment of approximately US$1.7 billion.

Since its initial investment in the “Canadian-based, vertically integrated, multi-brand company” in 2017, the strategic partnership has now culminated with ELC purchasing the remaining interests in Deciem for approximately $860 million, reported Estée Lauder Companies Inc.'s press announcement. According to the release, "The total investment, net of cash, approximated $1.7 billion over the three tranches."

ELC and Deciem's acquisition journey

Known as "The Abnormal Beauty Company," Deciem is renowned for its commitment to ingredient transparency and innovative multi-brand strategy. This acquisition is set to significantly bolster ELC's skin care portfolio. Deciem's flagship brand, The Ordinary, has become an industry disruptor, ranking "top two in prestige skin care in its home markets of Canada and the U.S. and top four in France, Germany, and the U.K. during the quarter ended March 31, 2024", said the press release.

Fabrizio Freda, President and Chief Executive Officer of ELC, praised Deciem's achievements: "We are incredibly proud of what Deciem is accomplishing. 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," he said. "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."

In ELC’s Q3 2024 Earnings Call​ last month, Freda enthusiastically highlighted the coming acquisition completion, stating the company was “thrilled to be further solidifying our brand portfolio in yet another way, as we acquire the remaining interest in Deciem, completing the deal we made three years ago when we became majority owner.”

She further explained in the earnings call that the completion is aligned with the partnership’s growing momentum in the global skin care space as “together, we have successfully invested to scale innovation for The Ordinary and have increased The Ordinary innovation as a percent of sales from 5% to over 25% expected this fiscal year; expanded the brand globally from India to the Middle East to South Africa; and improved its profitability by driving operational efficiencies in the supply chain.”

Echoing this sentiment, Nicola Kilner, Co-Founder and CEO of Deciem, expressed gratitude for the partnership in ELC’s press release: "Today, The Estée Lauder Companies becomes the forever home 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." Kilner emphasized, "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."

Optimistic future outlook

In last month’s earnings call, Freda expressed her confidence in a positive outlook for Deciem and ELC, stating, "we believe The Ordinary and Deciem still have bigger opportunities in front of them, and we are excited for what the future holds.” In particular, she added, “we are excited about what's to come including the launch of The Ordinary in Japan during the fourth quarter.”

Further, the press release highlighted that “over the last three years, The Ordinary has successfully increased innovation as a percentage of sales, driven by the highly-sought-after launches of Multi-Peptide Lash and Brow Serum, Multi-Peptide Eye Serum, and Soothing & Barrier Support Serum, demonstrating the brand’s continued focus on developing game-changing products.”

Stéphane de La Faverie, Executive Group President of ELC, also expressed his enthusiasm for the future in the company’s press announcement: "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. We have enjoyed a fantastic partnership over the last seven years, and we are thrilled to continue our journey together."

As Deciem integrates further into ELC's portfolio, the combined expertise and resources are expected to drive continued growth and innovation in the global beauty market.

Related news

Related products

show more

Calendula Cellular Elixir: Alchemy in a cell

Calendula Cellular Elixir: Alchemy in a cell

Content provided by Naolys | 24-Apr-2024 | Product Brochure

Get ready to experience a cellular evolution in skincare with InnerLift Calendula's advanced Plant Cell biotechnology.

See our latest innovations in personal care

See our latest innovations in personal care

Content provided by Covation Bio™ PDO | 02-Apr-2024 | White Paper

At CovationBio PDO, we’re helping the world achieve its sustainability goals by enabling better performing, better-for-the planet products across a range...

Collagen Reimagined, Discover Biodesigned Type XXI

Collagen Reimagined, Discover Biodesigned Type XXI

Content provided by Geltor | 20-Mar-2024 | Product Brochure

Collagen is the body’s most abundant protein and a mainstream ingredient for beauty. Type XXI collagen transcends a common protein into a powerful bioactive

Empowering natural barrier function for future-proof skin

Empowering natural barrier function for future-proof skin

Content provided by Lucas Meyer Cosmetics | 14-Mar-2024 | White Paper

Corneopeptyl™ is a new patented peptide biomimetic to the LCE6A protein, obtained by green chemistry-based synthesis. By mimicking the LCE6A protein activity,...

Related suppliers

Follow us

Products

View more

Webinars

Podcast

Beauty 4.0 Podcast