Estée Lauder Completes Acquisition of DECIEM

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

Estée Lauder first invested in DECIEM in 2017, increased its stake to become a majority shareholder in 2021, and recently exercised its option to purchase the remaining interest after three years on May 31, 2024 for an estimated $860 million in cash. The three investments total approximately $1.7 billion.

"As a digitally native organization with a strong following among millennial and Gen Z consumers, DECIEM helps strategically expand our skincare portfolio, and we believe there are more exciting growth opportunities ahead," said Fabrizio Freda, president and CEO of ELC.

DECIEM (or The Abnormal Beauty Company) owns the flagship brand The Ordinary, a beloved industry disruptor that ranked top two in prestige skincare in its home markets of Canada and the United States, and top four in France, Germany and the United Kingdom in the quarter ending March 31, 2024, the company said in a press release.

"Today, Estée Lauder Companies is the permanent home of DECIEM," added Nicola Kilner, co-founder and CEO of DECIEM. "Our founder, Brandon, was determined to disrupt the beauty world, and ELC has stayed true to that philosophy over the past seven years of our partnership."

The Ordinary, which meets consumer demand for effective, science-backed skincare, is one of ELC’s scaling brands, each with net sales between $500 million and $1 billion, the company added. Over the past two years, The Ordinary has expanded its reach globally, launching in key markets such as India, the Middle East and South Africa, leveraging ELC’s deep international expertise and network.

Founded in 2013 by the late Brandon Truaxe, DECIEM joins ELC with a brand incubation capability and portfolio that includes, in addition to The Ordinary, NIOD, a pioneer in technological skin science, and AVESTAN, a fragrance brand that reflects Brandon’s vision. Headquartered in Toronto, Canada, DECIEM has five in-house laboratories and is led by co-founder and CEO Nicola Kilner and global senior vice president and general manager Jesper Rasmussen.