Estee Lauder to buy Toronto-based company Deciem at US$2.2 billion valuation

Feb 23 2021, 9:15 pm

The make-up empire Estee Lauder Cos Inc. has struck a deal to buy the Toronto-based skincare company Deciem at a valuation of US$2.2 billion.

The agreement will see Estee Lauder purchase Deciem in two phases.

According to Estee Lauder, the first phase of the deal involves them raising their stake in Deciem from 29% to 75% for US$1 billion by June 30.

Once this transaction is complete, it will reflect a total value of approximately US$2.2 billion for the First Phase.

In the Second Phase, Estee Lauder said they would buy the remaining interests after three years — the amount will be determined based on Deciem’s sale performance.

The Toronto-based company, also referred to as The Abnormal Beauty Company, currently has six brands, including The Ordinary — an internationally popular skincare brand with a large consumer base.

“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, in a statement.

“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.”

The CEO of DECIEM, Nicole Kilner, also thanked Estee Lauder in a statement, saying the company has “supported us at our lowest, continue to trust our decisions, and most importantly they have loved us throughout.”

She noted that while the ownership of the company has changed, the team will remain the same.

DH Toronto StaffDH Toronto Staff

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