The Estée Lauder Companies Inc. (ELC) has announced that it has entered into an agreement to increase its investment in Canadian-based Deciem Beauty Group Inc. from 29% to 76%. The transaction is expected to close in the quarter ending June 30, 2021.
The amount to be paid by ELC at closing is approximately USD 1 billion, reflecting a total enterprise value of approximately USD $2.2 billion. Since Estée Lauder’s initial investment in June 2017, Deciem has grown rapidly, achieving net sales for the 12 months ended January 31, 2021, of approximately USD $460 million. Estée Lauder plans to take full ownership in three years.
Deciem’s portfolio currently encompasses six brands, including The Ordinary, an internationally popular skin care brand with impressive community- and referral-driven buzz reflecting a deep connection with its global consumer base of skin care devotees. Other brands include NIOD, a scientifically advanced skin care range for beauty addicts, Hylamide, The Chemistry Brand, and HIF.
Deciem’s range of “functional beauty” brands and products are sold primarily through Deciem-owned and retailer e-commerce sites and specialty-multi stores, as well as its own freestanding stores, primarily in the United States, United Kingdom and Canada.
Deciem was founded in 2013 by the late Brandon Truaxe, who set out to change the beauty industry through authenticity and transparency. He developed the company alongside Founder, Pasquale Cusano and Co-Founder, Nicola Kilner. Nicola now leads Deciem as CEO, working closely with Prudvi Kaka, Chief Scientific Officer, whose in-house team of biochemists lead innovation across Deciem’s brands, and Stephen Kaplan, Chief Operating Officer.