The Estée Lauder Companies Increases Ownership in DECIEM

Rhea-AI Summary

The Estée Lauder Companies has increased its ownership stake in DECIEM Beauty Group from 29% to approximately 76%. This acquisition marks the first phase of a planned total acquisition, with the remaining interests to be purchased after three years based on DECIEM's future performance. DECIEM, known for its innovative and consumer-focused approach, operates six brands including the popular skincare line, The Ordinary.

Positive

• Increased ownership in DECIEM from 29% to 76% enhances ELC's strategic position.
• The agreement to acquire remaining interests indicates confidence in DECIEM's growth potential.

Negative

• None.

The Estée Lauder Companies Inc. (NYSE: EL) announced today that it has completed the first phase of increasing its ownership in DECIEM Beauty Group Inc. (“DECIEM”), the Canadian-based, vertically integrated, multi-brand company. The Estée Lauder Companies (“ELC”) now owns approximately 76% of DECIEM (up from 29%), and has agreed to purchase the remaining interests after a three-year period at a price that will be determined based on the future performance of DECIEM.

The Estée Lauder Companies increases ownership in DECIEM. (Photo: Business Wire)

Known as “The Abnormal Beauty Company”, DECIEM is an industry disruptor with a consumer-focused approach. It was founded in 2013 by the late Brandon Truaxe, a visionary who set out to change the beauty industry through authenticity and transparency. He developed the company with creativity and innovation alongside Founder, Pasquale Cusano, and Co-Founder, Nicola Kilner, who is continuing as CEO of DECIEM.

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.

The Estée Lauder Companies Inc. is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. ELC’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, Tommy Hilfiger, M·A·C, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin Paris, TOM FORD BEAUTY, Smashbox, Ermenegildo Zegna, AERIN, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, BECCA, Too Faced, Dr. Jart+, and the DECIEM family of brands, including The Ordinary and NIOD.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20210518006088/en/

FAQ

What recent acquisition did The Estée Lauder Companies announce regarding DECIEM?

The Estée Lauder Companies announced that it has increased its ownership in DECIEM from 29% to approximately 76%.

When will The Estée Lauder Companies acquire the remaining interests in DECIEM?

The remaining interests in DECIEM are scheduled to be acquired after three years.

How does DECIEM contribute to The Estée Lauder Companies' portfolio?

DECIEM, known for its innovative brands like The Ordinary, enhances ELC's offerings in the skincare market.

What is the significance of the performance-based pricing for DECIEM's remaining interests?

The performance-based pricing reflects ELC's confidence in DECIEM's future growth and potential profitability.