NEW YORK--(BUSINESS WIRE)--
The Estée Lauder Companies Inc. (NYSE:EL) announced today that it has invested in DECIEM, a fast-growing, vertically integrated multi-brand company, driven by a consumer-centric focus that is already impacting the world of beauty. Terms of the investment were not disclosed.
DECIEM was founded in 2013 in Toronto, Ontario by Brandon Truaxe, who leads the company alongside Co-CEO Nicola Kilner. DECIEM’s innovative multi-brand strategy is propelled by a vertically integrated structure—with its own laboratory, manufacturing, e-commerce sites, retail stores and marketing infrastructure—that enables the company to rapidly identify opportunities, create and incubate new brands, and deliver quality, much-sought-after products.
The company has launched ten brands to date – including international cult favorite The Ordinary, an evolving collection of skin care treatments offering familiar and effective ingredients at accessible prices, and NIOD, an ingredients-driven skincare brand focused on addressing the root causes of aging. With a vibrant following among millennials and diverse consumers seeking “functional beauty” grounded in science, DECIEM offers a broad range of products across price points through its own multi-brand stores, department stores, e-commerce, TV shopping networks and select retailers, primarily in the U.S., U.K., and Canada.
“In four short years, Brandon and Nicola have established, in DECIEM, a powerful engine of innovation and growth,” said Fabrizio Freda, President and Chief Executive Officer of The Estée Lauder Companies Inc. “Through its unique business model, DECIEM has produced some of the most creative independent brands on the market, capturing the passion and trust of devoted fans around the world – and they are just getting started. We look forward to engaging with the team and supporting their global growth aspirations.”
“It’s nearly unthinkable for a conglomerate to embrace a disruptive mindset like that of DECIEM – and yet we have felt like family from the very first day we met the loving team at The Estée Lauder Companies,” said Mr. Truaxe. “I am so truly honored, humbled, excited and emotional to have the support of such a remarkable partner on our path to driving innovation in beauty.”
“DECIEM is a new kind of beauty company that is well-positioned to create a new generation of successful beauty brands,” said William P. Lauder, Executive Chairman of The Estée Lauder Companies Inc. “Brandon is the quintessential founder and entrepreneur who, as Estée Lauder exemplified, is willing to take risks, push the boundaries of beauty, and fearlessly pursue a bold vision. We are excited by DECIEM’s great potential and the opportunity to be part of its future.”
The Estée Lauder Companies Inc. received financial advice from Perella Weinberg Partners LP and legal counsel from Lowenstein Sandler LLP. DECIEM received financial advice from Baylor Klein and legal counsel from Gowling WLG LLP.
The Estée Lauder Companies Inc. is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The Company’s products are sold in over 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger, M·A·C, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, Tom Ford, Smashbox, Ermenegildo Zegna, AERIN, Tory Burch, RODIN olio lusso, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, By Kilian, BECCA and Too Faced.
The forward-looking statements in this press release, including those in the quoted remarks and those relating to the expectations and benefits of the acquisition, involve risks and uncertainties for The Estée Lauder Companies Inc. (“ELC”). Factors that could cause actual results to differ materially from those forward-looking statements include current economic and other conditions in the global marketplace, actions by retailers, suppliers and consumers, competition, ELC’s ability to successfully implement its long-term strategic plan and partner with DECIEM and those factors described in the Company’s annual report on Form 10-K for the year ended June 30, 2017.
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