Estée Lauder completes $1.7b acquisition of DECIEM

The deal, completed on 31 May, involved a cash transaction of approximately $860m.

The Estée Lauder Companies Inc. has finalised its acquisition of DECIEM Beauty Group Inc., a Canadian multi-brand company known for its flagship brand, The Ordinary.

The deal, completed on 31 May, involved a cash transaction of approximately $860m, bringing ELC’s total investment in DECIEM to $1.7b since 2017.

DECIEM, known as “The Abnormal Beauty Company,” has been a trailblazer in ingredient transparency and rapid market response. The Ordinary has gained a strong following for its affordable, effective skincare products. As of 31 March, it ranked in the top two for prestige skincare in Canada and the U.S., and top four in France, Germany, and the U.K.

The Ordinary is one of ELC’s scaling brands, with net sales between $500m and $1b. In the past two years, ELC’s international expertise has helped The Ordinary expand into markets like India, the Middle East, and South Africa. The brand has also increased innovation, launching popular products such as the Multi-Peptide Lash and Brow Serum, Multi-Peptide Eye Serum, and Soothing & Barrier Support Serum.

“In our seven years of partnership, DECIEM has achieved impressive growth whilst continuing its core mission of reimagining effective, high-quality skin care for today’s diverse and sophisticated consumers,” said Fabrizio Freda, president and chief executive officer of ELC. 

“As a digitally native organisation with a highly engaged following amongst 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,” he added.