Estée Lauder, whose portfolio includes La Mer, Clinique and Tom Ford Beauty, has announced that it has completed the acquisition of the Canadian group Deciem Beauty Group, which includes the cosmetics brand The Ordinary.
The Estée Lauder group made an initial investment in Deciem in 2017, then increased its stake in 2021 to become the majority shareholder. The group has now exercised its option to purchase the remaining shares after a three-year period.
“The Estée Lauder Group completed the purchase of the remaining interests on May 31 2024, using available cash for an estimated amount of $860 million (€790 million). The total investment, net of cash, amounts to approximately 1.7 billion dollars spread over the three tranches,” said the group in a financial release.
In the first quarter of 2024, The Ordinary ranked among the top two skincare brands in the selective network in Canada and the United States, and among the top four in France, Germany and the United Kingdom. Founded in 2023 by Brandon Truaxe, who died in 2029, Deciem is run by co-founder Nicola Kilner.
In the third quarter of its 23/24 financial year ending on March 31, Estée Lauder reported a 5% rise in sales to $3.94 billion (€3.69 billion). However, the group expects annual sales to fall by between 2% and 3%.
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