The Estée Lauder Companies Inc. has announced that it has entered an agreement to increase its investment in Deciem Beauty Group Inc. from approximately 29% to approximately 79%. The transaction is expected to close in the quarter ending June 30, 2021.
Deceim achieved net sales of approximately $460 million for the 12 months ended January 31, 2021. Estée Lauder will pay approximately $1 billion at closing, reflecting a total enterprise value of approximately $2.2 billion for the first phase.
Upon closing the first phase, Estée Lauder expects to have a non-cash gain on its initial investment. Excluding this gain, Deciem's net sales and earnings are expected to have a negligible impact on Estée Lauder's fiscal year 2021 consolidated results.
Deciem’s portfolio currently encompasses six brands, including The Ordinary.
“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 CEO of The Estée Lauder Companies Inc. “Deceim 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.”
“Brandon dreamed of ELC being the forever home for Deciem, and we are truly humbled to achieve his vision today,” said Deciem CEO 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."