The Estée Lauder Companies (ELC) has completed the acquisition of Canadian multibrand beauty house Deciem.
As reported, ELC first invested in Deciem in 2017 and increased its stake to become majority owner in 2021. ELC exercised its option to purchase the remaining interests in the company after a three-year period. It closed the transaction on 31 May for an estimated US$860 million cash on hand.
ELC’s total investment in Deciem, net of cash, is approximated to be US$1.7 billion over the three tranches. These amounts are subject to post-closing adjustments.
Industry disruptor Deciem, also known as ‘The Abnormal Beauty Company’, grew in popularity because of its consumer-focused approach to beauty marketing.
Deciem’s portfolio comprises six functional beauty brands sold through Deciem’s own retailer and ecommerce sites in the USA, UK and Canada. Its flagship The Ordinary brand has gained cult status for its no-nonsense marketing approach and high-efficacy skincare products.
The Ordinary is ranked in the top two prestige skincare brands in its home markets of Canada and the USA and is ranked top four in France, Germany and the UK in the quarter ended 31 March 2024.
Over the last two years, ELC has helped expand The Ordinary’s global reach by launching it in key markets such as India, the Middle East and South Africa. Sales were driven by the brand’s popular, innovation-driven Multi-Peptide Lash and Brow Serum, Multi-Peptide Eye Serum, and Soothing & Barrier Support Serum lines.
ELC Executive Chairman William P. Lauder commented: “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. 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.”
ELC President and CEO Fabrizio Freda added: “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 skincare for today’s diverse and sophisticated consumers. As a digitally native organisation with a highly engaged following among Millennial and Gen Z consumers, Deciem helps to strategically expand our skincare portfolio, and we believe there are many more exciting growth opportunities ahead.”
Deciem was founded in 2013 by the late Brandon Trauxe, who aimed to build a fully transparent and authentic beauty company. Trauxe developed Deciem alongside Co-Founders Pasquale Cusano and Nicola Kilner. Kilner leads Deciem as Chief Executive Officer, working closely with Deciem Chief Scientific Officer Prudvi Kaka and Chief Operating Officer Stephen Kaplan.
ELC’s progressive investment strategy has allowed it to build a long-term partnership with Deciem rooted in a shared legacy of innovation and entrepreneurship
“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” — William P. Lauder
ELC Executive Group President Stéphane de La Faverie added: “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.”
Kilner added: “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. 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.” ✈
