Cosmetics company Estee Lauder will pay about US$1 billion to take control of Canadian cosmetics company Deciem Beauty Group, the parent of skincare brand Ordinary.
The deal increases the 29 per cent stake Estee Lauder bought in 2017 to about 76 per cent and the company has agreed to buy the balance in three years’ time.
Founded in early 2013, Deciem recorded net sales of about $460 million for the year to January 31, with the US, the UK and Canada accounting for a major portion of its business.
Estee Lauder said the deal will be settled in June.
Deciem CEO Nicola Kilner, who will continue in the role after the deal is closed, described Estee Lauder as the perfect match for the Canadian business since its original investment.
“From the first time they flew to our cozy Toronto home … it became clear it was the match we thought we could only dream of. [Estee Lauder] put the brand ahead of business and are family orientated throughout – two values we ferociously hold dear,” Kilner said in a blog post announcing the deal.
“Whilst these changes impact our ownership, nothing will be changing for us at Deciem. Our loving team will remain committed to putting innovation, design, kindness, and function at the heart of everything we do.”
- Additional reporting by Reuters.