On Monday, The Estée Lauder Companies bought Deciem Beauty Group, which distributes skin-care products under The Ordinary and NIOD brands.
In 2017, ELC made an initial investment in Deciem. In 2021, it increased its share to become the majority owner. On May 31, it paid around $860 million to acquire the remaining interests in Deciem. According to The Estée Lauder Companies, the total investment over all three rounds is around $1.7 billion.
The president and CEO of ELC, Fabrizio Freda, expressed immense pride in Deciem’s accomplishments in a statement. “Throughout our seven years of collaboration, Deciem has accomplished remarkable expansion while staying true to its fundamental goal of revolutionizing efficient, premium skincare for the varied and discerning consumers of today.”
To combat weak sales in both China and the US, ELC is currently implementing a “profit recovery plan” that includes the layoff of 3,100 employees, in addition to the acquisition. The Ordinary was highlighted as a top performer in sales by ELC’s Freda in its third-quarter 2024 financial report.
“In the third quarter of fiscal 2024, we achieved our organic sales outlook, surpassed profitability expectations, and maintained our focus on improving working capital,” stated Freda of ELC. “Loved hero products and highly sought innovation drove organic sales growth, with La Mer, Estée Lauder, Jo Malone London, Le Labo, and The Ordinary at the helm.”
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Beauty Revolution Meets Business Savvy: How Deciem and ELC Thrive Together
Deciem is a vertically integrated company that sells clinical skin care to mass consumers at mass prices and targets beauty-conscious individuals, sometimes referred to as “skintellectuals.” ELC, being a heritage conglomerate, reaps the benefits of Deciem’s innovations and marketing genius. Deciem, in the meantime, has grown because of ELC’s infrastructure and resources. The Ordinary has lately extended its reach to South Africa, the Middle East, and India.
With net revenues ranging from $500 million to $1 billion, The Ordinary is one of the scaling brands in the company’s tier, according to ELC.
According to ELC’s Freda, “Deceim helps to expand our skin-care portfolio strategically, and we believe there are many more exciting growth opportunities ahead.” Digitally native, the brand is popular with millennials and Gen Z.
“Today The Estée Lauder Companies becomes the forever home of Deciem,” announced Nicola Kilner, co-founder and CEO of Deciem. Throughout our seven years of working together, ELC has shared Brandon’s vision to shake up the beauty industry. Due to their support and our skilled workforce’s energy, we have expanded into new areas and enhanced our operational capacities while remaining true to our core values of honesty, integrity, and transparency.
