The Estée Lauder Companies Inc. has completed its acquisition of the Canadian-based, vertically integrated, multi-brand company DECIEM Beauty Group Inc. ELC first invested in the beauty company, best known for its skincare brand The Ordinary, in 2017. ELC increased its stake to become majority owner in 2021 and recently exercised its option to purchase the remaining interests after a three-year period.

ELC closed on the purchase of the remaining interests on May 31, 2024 using cash on hand for an estimated $860 million. The total investment, net of cash, approximated $1.7 billion over the three tranches. These amounts are subject to post-closing adjustments in accordance with the agreement, said ELC.

Known as “The Abnormal Beauty Company,” Deciem is known for its dedication to ingredient transparency, agility and end-to-end capabilities, as well as a passionate global community for skincare fans. The company’s innovative multi-brand strategy, propelled by an agile and vertically integrated structure, enables the rapid ability to create and capture opportunities and trends to delight consumers around the world, according to ELC.

The Ordinary is ranked in the top two in prestige skin care in its home markets of Canada and the US and top four in France, Germany, and the UK during the quarter ended March 31, 2024.

“We are incredibly proud of what Deciem is accomplishing,” said Fabrizio Freda, president and CEO, ELC. “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.”

Deciem was was founded in 2013 by the late Brandon Truaxe. Truaxe died in 2019 at 40 years old.

“Today The Estée Lauder Companies becomes the forever home of Deciem,” said Nicola Kilner, co-founder and CEO of Deciem. “Our founder Brandon 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.”

DECIEM’s Growth at ELC

ELC’s progressive investment strategy has allowed it to build a long-term partnership with Deciem rooted in a shared legacy of innovation and entrepreneurship, said ELC. Since 2017, Deciem has leveraged ELC’s infrastructure and resources to expand consumer reach globally and drive stronger profitability through operational efficiencies.

ELC says Ordinary is in its “tier of scaling brands, each with net sales between $500 million and $1 billion.”

Over the last two years, enabled by ELC’s international network, The Ordinary has expanded its consumer reach globally with launches in key markets including India, the Middle East and South Africa. And, over the last three years, The Ordinary has successfully increased innovation as a percentage of sales, driven by the “highly-sought-after” launches such as Multi-Peptide Lash and Brow Serum, Multi-Peptide Eye Serum, and Soothing & Barrier Support Serum that ELC says demonstrates “the brand’s continued focus on developing game-changing products.

Streamlined Portfolio

Deciem’s portfolio also includes Niod, and Avestan a fragrance brand. The company discontinued other brands in 2022, pulling the plug on The Chemistry Brand, Hylamide, HIF and Abnomaly.

Deciem—which, according to the company, comes from decima, the Latin word for 10 in a sequence—is headquartered in Toronto. It has five in-house labs, and is led by Kilner and Jesper Rasmussen, global senior vice president and general manager.

“DECIEM is an exceptional company with authentic brands, highly effective must-have products, and a uniquely transparent and engaging relationship with its devoted consumers around the world,” said Stéphane de La Faverie, executive group president, ELC. “We have enjoyed a fantastic partnership over the last seven years, and we are thrilled to continue our journey together.”

William P. Lauder, executive chairman, said ELC was “grateful to the entire DECIEM team for its leadership and hard work, and we are tremendously excited to see what we can continue to achieve together in the months and years ahead.”