The Estée Lauder Cos. Inc. on Tuesday closed a deal for a majority stake in Deciem, the parent company of The Ordinary.
Lauder now owns 76 percent of Deciem. The transaction valued the company at $2.2 billion, making it the largest deal in Lauder’s history.
Lauder will buy the rest of Deciem after a three-year period at a purchase price that will be determined by Deciem’s future sales.
For 2020, Deciem nearly doubled sales to about $460 million. Right now, most of the company’s revenue is generated by The Ordinary, which gained a cult following for affordable skin care products including Niacinimide 10% + Zinc1% for $5.90, and AHA 30% + BHA 2% Peeling Solution.
The Lauder deal was originally revealed in February.
“It felt like the right time from our people, our brand, our infrastructure. We feel like it’s a time where they can really come in and offer access to different resources that can strengthen where we are today, but we are so strong in our identity and in our culture that it won’t be overtaken by big corporate,” said Deciem chief executive officer Nicola Kilner in a February interview.
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