Estée Lauder Companies acquires majority stake in No Ordinary parent Deciem in $1bn deal

Estée Lauder Companies acquires majority stake in No Ordinary parent Deciem in $1bn deal

THE WHAT? The Estée Lauder Companies (ELC) has acquired a majority stake in The Ordinary parent company Deciem in a $1 billion deal, which values the company at $2.2 billion. 

THE DETAILS Having purchased a 29 per cent stake in the company in 2017, the new deal increases ELC’s share to 76 percent, with the beauty giant set to do a full takeover in three years.

The deal, which is expected to close in the quarter ending 30 Jun, will see Deciem CEO Nicola Kilner report to ELC Group President Stéphane de la Faverie. 

Having almost doubled sales in 2020 to the tune of almost $460 million, Deciem plans to utilize ELC’s expertise to expand into areas such as India and the Middle East. 

Talking to WWD.com, Kilner said, “It felt like the right time from our people, our brand, our infrastructure. We feel like it’s a time where they can really come in and offer access to different resources that can strengthen where we are today, but we are so strong in our identity and in our culture that it won’t be overtaken by big corporate.”

THE WHY? The buyout highlights the significance of skincare for ELC, which is a major growth driver for the company, accounting for 58 percent of its revenue in the most recent quarter. 

Fabrizio Freda, ELC President and CEO, said, “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.”

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