Yesterday, The Estée Lauder Companies announced that it has finalized its acquisition of Deciem, the parent company behind the popular brands The Ordinary and Niod, for a total of $1.7 billion. This move follows a progressive investment journey that began in 2017, when Lauder first acquired a minority stake in Deciem. By 2021, Lauder had increased its stake to become the majority owner, and recently, it exercised its option to purchase the remaining interests for an estimated $860 million, bringing the total investment to $1.7 billion, net of cash.
“We are incredibly proud of what Deciem is accomplishing,” stated Fabrizio Freda, president and CEO of Estée Lauder, reflecting on the seven-year partnership. He highlighted Deciem’s impressive growth and its commitment to providing effective, high-quality skincare for a diverse and sophisticated consumer base. Freda emphasized the strategic importance of Deciem to Lauder’s portfolio, especially given Deciem’s strong digital presence and appeal among Millennial and Gen Z consumers, which positions Lauder for further growth in the skincare market.
Despite Estée Lauder facing challenges over the past year due to decreased demand in China and its home market, Deciem has been a standout performer. The Ordinary, one of Deciem’s flagship brands, has been pivotal in driving organic sales growth, as evidenced by the recent quarterly results. The Ordinary has not only bolstered Lauder’s financial performance but also expanded its global footprint, entering markets such as India, the Middle East, and South Africa. New product launches, including the Multi-Peptide Lash and Brow Serum, Multi-Peptide Eye Serum, and Soothing & Barrier Support Serum, have contributed to its success.
Nicola Kilner, cofounder and CEO of Deciem, expressed her excitement about the acquisition, stating, “Today, the Estée Lauder Companies becomes the forever home of Deciem.” She acknowledged the vision of Deciem’s founder, Brandon Truaxe, and praised Lauder for embracing this disruptive approach to beauty over the years. Kilner credited the partnership with enhancing Deciem’s operational capabilities and facilitating market expansions, all while maintaining the brand’s core values of transparency, quality, and authenticity.
