Estée Lauder Companies (ELC) has closed on its acquisition of Canadian-based, vertically integrated, multi-brand company DECIEM Beauty Group to expand its skincare portfolio.
Known as The Abnormal Beauty Company, DECIEM owns beauty brands including NIOD, Hylamide and The Ordinary.
The Ordinary is in ELC’s tier of scaling brands, each with reported net sales between $500m and $1bn.
ELC’s progressive investment strategy has allowed it to build a long-term partnership with DECIEM. The company first invested in DECIEM in 2017, increased its stake to become the majority owner in 2021, and recently exercised its option to purchase the remaining interests after three years.
ELC closed the purchase with cash for an estimated $860m. The total investment net of cash was approximately $1.7bn in three tranches.
ELC president and CEO Fabrizio Freda commented: "As a digitally native organisation with a highly engaged following among millennial and Gen Z consumers, DECIEM helps to strategically expand our skincare portfolio, and we believe there are many more exciting growth opportunities ahead.”
Other brands owned by ELC include Bobbi Brown, Clinique, La Mer and Tom Ford.
The company recently provided an update on its palm oil supply chain initiative Project Lampung which is aimed at strengthening the sustainability of the palm oil supply chain and supporting smallholder farmers.
