Estée Lauder completes the acquisition of DECIEM

The Estée Lauder Companies (ELC) has completed its acquisition of the Canadian multi-brand company DECIEM Beauty Group.

Estée Lauder first invested in DECIEM in 2017, increased its stake to become majority owner in 2021, and recently exercised its option to purchase the remaining interests after a three-year period on May 31, 2024 using cash on hand for an estimated 860 million dollars. The total investment approximated 1.7 billion dollars over the three tranches.

"As a digitally native organisation 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,” said Fabrizio Freda, president and chief executive officer, ELC.

The company said in a release that DECIEM known as The Abnormal Beauty Company owns a flagship brand, The Ordinary, which is a consumer-beloved industry disruptor that ranked top two in prestige skin care in its home markets of Canada and the US and top four in France, Germany, and the UK during the quarter ended March 31, 2024.

"Today The Estée Lauder Companies becomes the forever home for 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,” added Nicola Kilner, co-founder and CEO DECIEM.

The company added that tapping into consumer desire for effective, science-backed skin care, The Ordinary is in ELC’s tier of scaling brands, each with net sales between 500 million dollars and 1 billion dollars. Over the last two years, enabled by ELC’s deep international expertise and network, The Ordinary has expanded its reach globally with launches in key markets including India, the Middle East, and South Africa.

Founded in 2013 by the late Brandon Truaxe, DECIEM joined ELC with brand incubation capabilities and a portfolio that, in addition to The Ordinary, also includes NIOD, a pioneer in tech-led skin science, and AVESTAN, a fragrance brand that honours Brandon’s vision. DECIEM is headquartered in Toronto, Canada, which is also home to its five in-house labs, and is led by co-founder and CEO Nicola Kilner and Jesper Rasmussen, global senior vice president and general manager.