The acquisition of the maker of The Ordinary is said to be the New York-based beauty conglomerates largest ever deal
Estée Lauder Companies (ELC) is set to acquire Deciem, the maker of The Ordinary, by 2024.
This week, the New York-based beauty conglomerate announced plans to increase its initial investment in the skin care company from 29% to 76% and will take complete ownership of Deciem within three years.
Founded in 2013 by Brandon Truaxe, Deciem first landed an investment deal with ELC in 2017, but the new terms sees the Canadian company valued at US$2.2bn as ELC is paying $1bn to increase stake.
"Over the last four years, we have built a truly special long-term partnership with the incredible Deciem team, and we are excited for what the future holds,” said Fabrizio Freda, President and CEO of ELC.
Known for its affordable cosmetics, Deciem increased sales to $460m, reflecting a wider industry demand for skin care as consumers increasingly experiment with ingredients such as AHAs and niacinamide.
The company also expanded its retail partnerships and was one of the first brands to retrain its own-store retail team into virtual consultants.
"Deciem is an exceptional company. Nicola [CEO and co-founder of Deciem] and her team have built and cultivated authentic brands with highly effective, must-have products using a vertically integrated model, and have fostered a uniquely transparent and engaging communication style," continued Freda.
"The company’s hero products, desirable innovation, and digital and consumer-first high-touch approach have been instrumental to its success.”
In 2018, Kilner was installed as CEO of Deciem after a judge ordered Truaxe to be removed from the company following a series of increasingly erratic posts, such as suddenly ordering all Deciem stores to be closed. He died the following January.
"Brandon dreamed of ELC being the forever home for Deciem, and we are truly humbled to achieve his vision today,” said Kilner.
“Prudvi [CSO], Stephen [COO], our team and I will continue to build on Brandon's creation and we thank ELC for their continued commitment to our vision and future."