With A Final Investment Of $860 Million, Estée Lauder Fully Integrates The High-Growth Skincare Brand Into Its Portfolio
The Estée Lauder Companies has finalized its acquisition of Deciem, the parent company of popular skincare brands The Ordinary and Niod. The deal culminates with Estée Lauder’s recent purchase of the remaining shares for an estimated $860 million, bringing its total investment in Deciem to approximately $1.7 billion, net of cash.
The acquisition process began in 2017 when Lauder first invested in Deciem, later increasing its stake in 2021 to become the majority owner. “We are incredibly proud of what Deciem is accomplishing,” stated Fabrizio Freda, President and CEO of Estée Lauder. “In our seven years of partnership, Deciem has achieved impressive growth while continuing its core mission of reimagining effective, high-quality skincare for today’s diverse and sophisticated consumers.”
Deciem is known for its strong digital presence and popularity among younger demographics, particularly Millennials and Gen Z, which strategically enhances Estée Lauder’s skincare portfolio. “As a digitally native organization 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,” Freda added.
Despite facing challenges due to decreased demand in China and its domestic market, Estée Lauder has noted that Deciem has been a consistent highlight in its business lineup. In the latest quarterly results, Deciem was credited as one of the five brands driving organic sales growth within the company, buoyed by its innovative products.
Over the past two years, Deciem has broadened its market reach into regions such as India, the Middle East, and South Africa. The brand has also launched several new products, including the Multi-Peptide Lash and Brow Serum, Multi-Peptide Eye Serum, and Soothing & Barrier Support Serum.
Reflecting on the acquisition, Nicola Kilner, Co-founder and CEO of Deciem, remarked, “Today, the Estée Lauder Companies becomes the forever home of Deciem.” She continued, “Our founder Brandon [Truaxe] 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.”