Deciem or ‘The Abnormal Beauty Company’ is known for its no-nonsense consumer-focused approach to beauty through flagship ‘The Ordinary’ brand

The Estée Lauder Companies (ELC) has announced that it will be increasing its stake in and ultimately acquiring multi-brand company Deciem Beauty Group (DECIEM) in full.

The US beauty giant has entered into an agreement with Deciem to increase its stake from 29% to 76%, during the first phase of the transaction which is expected to close in the quarter ending July 2021. The Estée Lauder Companies will purchase the remaining interests, during the second phase of the acquisition, over a three-year period.

The Estée Lauder Companies made its initial investment into Deciem in June 2017. Since then, Deciem has grown tremendously and achieved net sales of US$460 million in the last 12 months ending 31 January 2021.

The Estée Lauder Companies is expected to pay approximately US$1 billion, reflecting a total company value of US$2 billion, during the first phase of the acquisition.

Industry disruptor Deciem, also known as ‘The Abnormal Beauty Company,’ grew in popularity because of its consumer-focused approach to beauty marketing. The company was founded by the late Brandon Trauxe in 2013, who aimed to build a fully transparent and authentic beauty company.

The acquisition will happen in two phases. ELC will increase its Deciem stake from 29% to 76% by July 2021 and acquire the remaining interests over a three-year period.

Trauxe developed Deciem alongside Co-Founders Pasquale Cusano and Nicola Kilner. Kilner now leads Deciem as Chief Executive Officer. She works closely with Deciem Chief Scientific Officer Prudvi Kaka and Chief Operating Officer Stephen Kaplan.

Deciem’s portfolio comprises six functional beauty brands which are sold through Deciem’s own retailer and ecommerce sites in the US, UK and Canada. Its flagship ‘The Ordinary’ brand has gained cult-status for its no-nonsense marketing approach and high-efficacy skincare products.

“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,” commented The Estée Lauder Companies President and Chief Executive Officer Fabrizio Freda.

“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.”

Deciem CEO Nicola Kilner added, “Brandon dreamed of The Estée Lauder Companies being the forever home for Deciem, and we are truly humbled to achieve his vision today. Prudvi, Stephen, our team and I will continue to build on Brandon’s creation, and we thank The Estée Lauder Companies for their continued commitment to our vision and future.”