The Estée Lauder Companies Inc. (ELC) has announced the successful completion of its acquisition of the remaining interests in DECIEM Beauty Group Inc., a Canada-based, vertically integrated multi-brand company. This acquisition, valued at approximately $860 million for the final tranche, brings ELC’s total investment in DECIEM to an estimated $1.7 billion, net of cash. The acquisition was finalized on May 31, 2024, leveraging cash on hand, and includes post-closing adjustments as per the terms of the agreement.

Strategic Expansion and Brand Growth

ELC’s acquisition follows a strategic investment path that began in 2017 and saw ELC become the majority owner in 2021. DECIEM, known as “The Abnormal Beauty Company,” is renowned for its commitment to ingredient transparency and has a strong, engaged global community. This acquisition significantly enhances ELC’s skincare portfolio and expands its global consumer reach. DECIEM’s flagship brand, The Ordinary, has achieved impressive market positions, ranking top two in prestige skincare in its home markets of Canada and the U.S., and top four in France, Germany, and the UK as of March 31, 2024.

Leadership and Innovation at DECIEM

Nicola Kilner, Co-Founder and CEO of DECIEM, expressed enthusiasm about the integration: “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.” Under ELC, DECIEM has leveraged extensive resources to expand its consumer reach and enhance operational efficiencies.

Product Innovation and Market Penetration

The Ordinary, as part of ELC’s tier of scaling brands, has expanded into key markets including India, the Middle East, and South Africa, driven by ELC’s international expertise. The brand has also increased its focus on innovation, launching new products like the Multi-Peptide Lash and Brow Serum, which have contributed significantly to its growth.

This acquisition marks a milestone in ELC’s strategy to diversify and strengthen its product offerings in the competitive beauty industry. By fully integrating DECIEM, ELC not only capitalizes on DECIEM’s innovative approach and market penetration but also reinforces its commitment to leading the industry in customer-centric, sustainable beauty solutions.

The full acquisition of DECIEM by The Estée Lauder Companies represents a strategic enhancement of ELC’s portfolio, positioning it for continued success in the global beauty market. As DECIEM joins the ranks of ELC’s major brands, both companies look forward to exploring new growth opportunities and further innovating in the beauty industry.

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