American beauty conglomerate, The Estée Lauder Companies Inc. (ELC), has recently finalized its acquisition of a majority stake in Deciem Beauty Group Inc., the Canadian company behind popular skincare brands The Ordinary and Niod. Previously holding a 29% stake in Deciem, ELC now holds a controlling stake of approximately 76%. This acquisition marks the first step in a three-year agreement that will eventually result in Estée Lauder acquiring full ownership of Deciem.

The initial deal, announced in February of this year, was valued at $1 billion. However, future acquisitions will be based on Deciem’s performance going forward. This flexible approach allows Estée Lauder to assess the performance of Deciem before committing to further investments.

Deciem was founded in 2013 by Brandon Truaxe and is currently led by co-founder Nicola Kilner, who assumed the role of CEO in 2018. Truaxe’s unpredictable behavior led to his removal from the company, and Kilner took charge, steering Deciem with a disruptive and community-focused approach centered around accessibility, transparency, and authenticity.

Deciem’s portfolio consists of six brands, including highly popular skincare lines like The Ordinary, Niod, Hylamide, and The Chemistry Brand, as well as the haircare label Hif. Estée Lauder’s partnership with Deciem began in 2017, with Truaxe assuring customers that the company’s values would remain intact under the new ownership.

However, tensions between Truaxe and Estée Lauder escalated in 2018 when legal action was taken against Truaxe after his attempt to shut down the company. Truaxe was subsequently removed from his position as CEO and the company’s board. Since then, Nicola Kilner has successfully revitalized Deciem, transforming it into a multimillion-dollar cosmetics empire.

In the fiscal year ending on January 31, 2021, Deciem recorded sales of $460 million. This acquisition further solidifies Estée Lauder’s position in the beauty industry. Alongside Deciem, Estée Lauder owns well-established brands like MAC, Aramis, Clinique, and holds beauty licenses for popular fashion brands such as Tommy Hilfiger, DKNY, Michael Kors, and Tom Ford.

Estée Lauder’s latest financial report reveals sales of $3.86 billion in the third quarter ended on March 31, 2021, showing a 16% increase compared to the previous year. The company’s net earnings for the quarter amounted to $456 million.

The acquisition of a controlling stake in Deciem highlights Estée Lauder’s commitment to growth and its recognition of the disruptive potential and success of the skincare brand. With this strategic move, Estée Lauder aims to leverage Deciem’s innovative products and loyal customer base, while also supporting the brand’s continuous expansion.

[Link 1: The Estée Lauder Companies Inc.](https://www.elcompanies.com/)

[Link 2: Deciem Beauty Group Inc.](https://deciem.com/)