The Estée Lauder Companies (ELC) has signed an agreement with DECIEM Beauty Group, the digitally driven company behind fan-favorite brands including The Ordinary and NIOD, with plans to eventually acquire the brand in full.
Per a recent release, the “first phase” in this venture includes ELC increasing their active investment in DECIEM from approximately 26 percent to 76 percent, which will cost about $2.2 billion. After this step is complete in June of 2021, ELC will purchase DECIEM in full after a three-year period, which they’re calling the “second phase.” The purchase price for the remaining interest is currently unknown and will be determined based on DECIEM’s performance.
While ELC is still three years out from obtaining full ownership, leaders of the DECIEM team—founder Brandon Truaxe, founder Pasquale Cusano and cofounder-turned CEO Nicola Kilner—share their excitement for this major step in their career.
“Brandon dreamed of ELC being the forever home for DECIEM, and we are truly humbled to achieve his vision today,” says Kilner in the release. “Our team and I will continue to build on Brandon’s creation, and we thank ELC for their continued commitment to our vision and future.”
Likewise, ELC has confidence in the venture. “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,” says Fabrizio Freda, president and chief executive officer of The Estée Lauder Companies, in the release. “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.”
Find a Doctor
Find a NewBeauty “Top Beauty Doctor” Near you
Credit: Source link