Cosmetics giant Estee Lauder is taking over Ordinary Skincare brand cosmetics. The company has revealed that it paid $1 billion to acquire Ordinary’s parent company DECIEM Beauty Group Inc. The deal leaves Estee Lauder in control of 76% of the company’s stock.
The takeover is expected to be completed by the end of June. Estee Lauder first invested in its new subsidiary in 2017.
Estee Lauder previously held about 29% of the company’s stock. So if you do the math then that comes to $1 billion for 47% of its shares. So that would give DECIEM Beauty Group a valuation of more than $2.1 billion.
It was founded in 2013 by the late Brandon Truaxe. He developed the company alongside co-founder, Pasquale Cusano and Co-Founder, Nicola Kilner. Nicola 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.
“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.”
“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 Chief Executive Officer 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.”
DECIEM recorded net sales of about $460 million for the 12 months ended Jan. 31, 2020. DECIEM’s portfolio currently encompasses six brands, including The Ordinary, an internationally popular skin care brand with impressive community- and referral-driven buzz reflecting a deep connection with its global consumer base of skin care devotees. DECIEM’s range of “functional beauty” brands and products are sold primarily through DECIEM-owned and retailer e-commerce sites and specialty-multi stores, as well as its own freestanding stores, primarily in the United States, United Kingdom and Canada.