Estée Lauder Completes Acquisition of DECIEM Beauty Group

Estée Lauder Companies has completed its acquisition of DECIEM Beauty Group, a Canadian-based, vertically integrated, multi-brand beauty company. The acquisition was first announced in 2017, and Estée Lauder has been gradually increasing its stake in DECIEM ever since.

The final purchase price was US$860 million, bringing the total investment in DECIEM to approximately US$1.7 billion. DECIEM is known for its innovative and affordable skincare products, including its flagship brand, The Ordinary. The brand has been a major disruptor in the beauty industry and is a popular choice among millennials and Gen Z consumers.

“We are incredibly proud of what DECIEM is achieving,” said Fabrizio Freda, President and CEO, Estée Lauder Companies. “In our seven years of partnership, DECIEM has grown impressively while pursuing its core mission of reimagining effective, high-quality skincare for today's diverse and sophisticated consumers.”

DECIEM is expected to continue operating as an independent brand within the Estée Lauder portfolio. Nicola Kilner, co-founder and CEO, DECIEM, will remain in her role. The acquisition of DECIEM gives the company a strong foothold in the growing market for affordable skincare and expands its portfolio of brands to appeal to a wider range of consumers.

Estée Lauder Companies reported a 5% increase in sales to US$3.9 billion in the third quarter of its fiscal year 2024 and expects annual sales to fall between 2% and 3%. Estée Lauder also invested nearly US$9 million in research and development of products in Mexican facilities.