The Strategist

Estée Lauder to take control of popular 'skintellectuals' cosmetics brand for $1B

02/25/2021 - 03:02

US-based Estée Lauder will spend $1bn to increase its stake in cosmetics brand The Ordinary. The brand, focusing on simplicity and transparency in its products, has set an example for the industry and is popular with 'skintellectuals' - young people who take a scientific and conscious approach to self-care.

Phan Minh Tuấn
Phan Minh Tuấn
American cosmetics company Estée Lauder has agreed to pay $1 billion to acquire a majority stake in the company Deciem, the owner of the popular beauty brand The Ordinary. This is reported by the Financial Times. For Estée Lauder this will be one of the largest purchases in its history, the newspaper noted.

Estée Lauder already owns 29% of Deciem, a stake it bought in 2017. As a result of the new deal, Estée Lauder's stake will increase to 76%, and the estimated value of Deciem will be $2.2 billion. Estée Lauder will buy the remaining stake within three years at a different price, which has not yet been determined.

The Ordinary appeared in Deciem's portfolio in 2016. Deciem was created by Iranian-Canadian programmer Brandon Truaxe. With The Ordinary, he focused on simplicity in packaging design, transparency in production and pricing. The brand has become popular with the so-called skintellectuals ('skin' plus 'intellectual'): in 2017, Vogue called it a community of young people who approach self-care from the perspective of science and conscious consumption.