The Estée Lauder Companies Inc. (NYSE: EL) (“ELC”) announced
today that it has completed its acquisition of the Canadian-based,
vertically integrated, multi-brand company DECIEM Beauty Group Inc.
(“DECIEM”). ELC 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 in DECIEM after a
three-year period. ELC closed on the purchase of the remaining
interests on May 31, 2024 using cash on hand for an estimated $860
million. The total investment, net of cash, approximated $1.7
billion over the three tranches. These amounts are subject to
post-closing adjustments in accordance with the agreement.
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Known as “The Abnormal Beauty Company,” DECIEM’s dedication to
ingredient transparency, agility, end-to-end capabilities, and
passionate global community of skin care devotees help to expand
ELC’s skin care portfolio to reach even more global consumers. The
company’s innovative multi-brand strategy, propelled by an agile
and vertically integrated structure, enables the rapid ability to
create and capture opportunities and trends to delight consumers
around the world. DECIEM’s flagship brand, The Ordinary, is a
consumer-beloved industry disruptor that ranked top two in prestige
skin care in its home markets of Canada and the U.S. and top four
in France, Germany, and the U.K. during the quarter ended March 31,
2024.
“We are incredibly proud of what DECIEM is accomplishing,” said
Fabrizio Freda, President and Chief Executive Officer, ELC. “In our
seven years of partnership, DECIEM has achieved impressive growth
while continuing its core mission of reimagining effective,
high-quality skin care for today’s diverse and sophisticated
consumers. As a digitally native organization 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.”
"Today The Estée Lauder Companies becomes the forever home of
DECIEM,” said Nicola Kilner, Co-Founder and CEO 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."
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. Since 2017, DECIEM has leveraged
ELC’s infrastructure and resources to expand consumer reach
globally and drive stronger profitability through operational
efficiencies.
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 and $1 billion. Over the last two
years, enabled by ELC’s deep international expertise and network,
The Ordinary has expanded its consumer reach globally with launches
in key markets including India, the Middle East, and South Africa.
And, over the last three years, The Ordinary has successfully
increased innovation as a percentage of sales, driven by the
highly-sought-after launches of Multi-Peptide Lash and Brow Serum,
Multi-Peptide Eye Serum, and Soothing & Barrier Support Serum,
demonstrating the brand’s continued focus on developing
game-changing products.
Founded in 2013 by the late Brandon Truaxe, a visionary who
championed authenticity and transparency in the beauty industry,
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 honors 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.
“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,”
said Stéphane de La Faverie, Executive Group President, ELC. “We
have enjoyed a fantastic partnership over the last seven years, and
we are thrilled to continue our journey together.”
“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,” said William P.
Lauder, Executive Chairman, ELC. “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.”
The forward-looking statements in this press release, including
those in the quoted remarks expectations for DECIEM and the ongoing
benefits of the acquisition, involve risks and uncertainties.
Factors that could cause actual results to differ materially from
those forward-looking statements include current economic,
geopolitical and other conditions in the global marketplace,
actions by retailers, suppliers and consumers, competition, the
ongoing integration of the DECIEM business and/or the ability to
implement DECIEM’s long-term strategic plan, and those risk factors
described in ELC’s annual report on Form 10-K for the year ended
June 30, 2023.
About The Estée Lauder Companies
The Estée Lauder Companies Inc. is one of the world’s leading
manufacturers, marketers, and sellers of quality skin care, makeup,
fragrance, and hair care products, and is a steward of luxury and
prestige brands globally. The company’s products are sold in
approximately 150 countries and territories under brand names
including: Estée Lauder, Aramis, Clinique, Lab Series, Origins,
M·A·C, La Mer, Bobbi Brown Cosmetics, Aveda, Jo Malone London,
Bumble and bumble, Darphin Paris, TOM FORD, Smashbox, AERIN Beauty,
Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN
PARIS, Too Faced, Dr.Jart+, and the DECIEM family of brands,
including The Ordinary and NIOD.
ELC-C ELC-F ELC-B
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Media Relations: Jill Marvin jimarvin@estee.com
Investor Relations: Rainey Mancini rmancini@estee.com
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