The Estée Lauder Cos. has completed its acquisition of Deciem, the parent company of The Ordinary and Niod.
Lauder first invested in Deciem in 2017, increased its stake to become majority owner in 2021, and recently exercised its option to purchase the remaining interests for an estimated $860 million. The total investment adds up to about $1.7 billion, net of cash.
“We are incredibly proud of what Deciem is accomplishing,” said Fabrizio Freda, president and chief executive officer of Lauder, in a statement. “In our seven years of partnership, Deciem has achieved impressive growth while continuing its core mission of reimagining effective, high-quality skin care for today’s diverse and sophisticated consumers. As a digitally native organization with a highly engaged following among 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.”
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While Lauder has struggled over the past year on the back of lower demand in China and in its home market, Deciem has remained the company’s main bright spot. In its most recent quarterly results released last month, Freda said The Ordinary was one of five brands driving organic sales growth, with hero products and highly sought innovation.
Over the last two years, The Ordinary has expanded in India, the Middle East and South Africa, while launches have included Multi-Peptide Lash and Brow Serum, Multi-Peptide Eye Serum and Soothing & Barrier Support Serum.
“Today, the Estée Lauder Companies becomes the forever home of Deciem,” said Nicola Kilner, cofounder and CEO of Deciem. “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.”