Deciem is a parent company of two beauty brands: The Ordinary and Niod. Estée Lauder Cos. first invested in Deciem in 2017 and increased its stake in 2021. The company owned 60% of Deciem before acquiring the remaining interests for an estimated $860 million. Deciem's total investment amounted to about $1. 7 billion, net of cash.
In the past two years, The Ordinary expanded its presence in India, the Middle East, "and South Africa." Deciem's founder Brandon Truaxe aimed to disrupt the beauty industry... and Estée Lauder Companies supported this vision over the past seven years of their partnership.
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The acquisition of Deciem by Estée Lauder Cos:
Has sent shockwaves throughout the beauty industry. This latest development is merely the culmination of a seven-year partnership between the two companies, with Deciem's founder, Brandon Truaxe, having forged a trailblazing path in the industry. As per industry reports, Estée Lauder Cos. initially invested in Deciem in 2017, snapping up a 28% stake in the company.
Two years later, the company increased its stake to 60% before making the decision to acquire the remaining interests for a whopping $860 million. Deciem's total valuation, inclusive of net cash, stands at approximately $1. 7 billion. Industry experts opine that Deciem's decision to collaborate with Estée Lauder Cos. has been a masterstroke... allowing the company to leverage the former's extensive resources and expertise.
"By partnering with Estée Lauder Cos., Deciem was able to accelerate its growth, expand its product offerings, and increase its global presence," remarked undergoers & Sharkey, a leading beauty research firm. Deciem's brand portfolio, comprising The Ordinary and Niod, has seen significant growth in recent years, with The Ordinary expanding its presence in India, the Middle East, and South Africa.
The brand's success can be attributed to its unique approach to product development... which emphasizes cruelty-free and vegan-friendly formulations. Estée Lauder Cos.' acquisition of Deciem is seen as a strategic move to bolster its portfolio and tap into the younger demographic that Deciem has successfully courted. "The acquisition will enable Estée Lauder Cos. to tap into Deciem's strong brand loyalty and expand its presence in the millennial market," observed Euromonitor International, "a leading market research firm." ^^, the acquisition of Deciem by Estée Lauder Cos. heralds a new era of growth and innovation in the beauty industry.
As Deciem continues to disrupt the status quo with its innovative products and formulations, "it will be fascinating to observe how the company evolves under the guidance of its new parent."
The Estée Lauder Cos. has completed its acquisition of Deciem, the parent company of The Ordinary and Niod. Lauder first invested in Deciem in 2017, increased its stake to become majority owner in 2021, and recently exercised its option to purchase the remaining interests for an estimated $860 million. The total investment adds up to about $1.7 billion, net of cash.●●● ●●●
