Christine Esposito, Managing Editor02.23.21
The Estée Lauder Companies Inc. likes The Ordinary. The beauty giant has entered into an agreement to increase its investment in the Canadian-based DECIEM Beauty Group Inc. from approximately 29% to approximately 76%. ELC has agreed to purchase the remaining interests after a three-year period.
Since ELC’s initial investment in June 2017, DECIEM has grown rapidly, achieving net sales for the 12 months ended January 31, 2021 of approximately $460 million. The company’s The Ordinary brand is highly popular skin care brand.
The first part of the transaction is expected to close in the quarter ending June 30, 2021.
The amount to be paid by ELC at closing is approximately USD $1.0 billion, reflecting a total enterprise value of approximately $2.2 billion for the first phase, according to ELC.
Known as “The Abnormal Beauty Company”, DECIEM is a vertically integrated, multi-brand company founded in 2013 by the late Brandon Truaxe, who developed the company with creativity and innovation alongside Founder Pasquale Cusano and Co-Founder Nicola Kilner.
Kilner now leads DECIEM as CEO, working closely with Prudvi Kaka, chief scientific officer, whose in-house team of biochemists lead innovation across DECIEM’s brands, and Stephen Kaplan, chief operating officer.
DECIEM also owns Niod, Hylamide, The Chemistry Brand and others.
“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 The Estée Lauder Companies Inc. “DECIEM is an exceptional company. Nicola 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. The company’s hero products, desirable innovation, and digital- and consumer-first high-touch approach have been instrumental to its success.”
“Brandon dreamed of ELC being the forever home for DECIEM, and we are truly humbled to achieve his vision today,” said Nicola Kilner. “Prudvi, Stephen, 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."
The acquisition is subject to certain conditions, including regulatory approvals and is expected to close in the quarter ending June 30, 2021.
Since ELC’s initial investment in June 2017, DECIEM has grown rapidly, achieving net sales for the 12 months ended January 31, 2021 of approximately $460 million. The company’s The Ordinary brand is highly popular skin care brand.
The first part of the transaction is expected to close in the quarter ending June 30, 2021.
The amount to be paid by ELC at closing is approximately USD $1.0 billion, reflecting a total enterprise value of approximately $2.2 billion for the first phase, according to ELC.
Known as “The Abnormal Beauty Company”, DECIEM is a vertically integrated, multi-brand company founded in 2013 by the late Brandon Truaxe, who developed the company with creativity and innovation alongside Founder Pasquale Cusano and Co-Founder Nicola Kilner.
Kilner now leads DECIEM as CEO, working closely with Prudvi Kaka, chief scientific officer, whose in-house team of biochemists lead innovation across DECIEM’s brands, and Stephen Kaplan, chief operating officer.
DECIEM also owns Niod, Hylamide, The Chemistry Brand and others.
“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 The Estée Lauder Companies Inc. “DECIEM is an exceptional company. Nicola 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. The company’s hero products, desirable innovation, and digital- and consumer-first high-touch approach have been instrumental to its success.”
“Brandon dreamed of ELC being the forever home for DECIEM, and we are truly humbled to achieve his vision today,” said Nicola Kilner. “Prudvi, Stephen, 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."
The acquisition is subject to certain conditions, including regulatory approvals and is expected to close in the quarter ending June 30, 2021.
