Business Wire

The Estée Lauder Companies to Increase Its Ownership in DECIEM

Share

The Estée Lauder Companies Inc. (NYSE: EL) announced today that it has entered into an agreement to increase its investment in the Canadian-based, vertically integrated, multi-brand company, DECIEM Beauty Group Inc. (“DECIEM”) from approximately 29% to approximately 76% (the “First Phase”). The transaction is expected to close in the quarter ending June 30, 2021. The Estée Lauder Companies Inc. (“ELC”) has agreed to purchase the remaining interests after a three-year period (the “Second Phase”).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210223005352/en/

(Photo: Business Wire)

(Photo: Business Wire)

Known as “The Abnormal Beauty Company”, DECIEM is an industry disruptor with a consumer-focused approach. It was founded in 2013 by the late Brandon Truaxe, a visionary who set out to change the beauty industry through authenticity and transparency. He developed the company with creativity and innovation alongside Founder, Pasquale Cusano and Co-Founder, Nicola Kilner. Nicola now leads DECIEM as CEO, working closely with Prudvi Kaka, Chief Scientific Officer, whose in-house team of biochemists lead innovation across DECIEM’s brands, and Stephen Kaplan, Chief Operating Officer.

“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,” said Fabrizio Freda, President and Chief Executive Officer of The Estée Lauder Companies Inc. “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.”

“Brandon dreamed of ELC being the forever home for DECIEM, and we are truly humbled to achieve his vision today,”said Nicola Kilner. “Prudvi, Stephen, 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."

Since ELC’s initial investment in June 2017, DECIEM has grown rapidly, achieving net sales for the 12 months ended January 31, 2021, of approximately USD $460 million. The amount to be paid by ELC at closing is approximately USD $1.0 billion, reflecting a total enterprise value of approximately USD $2.2 billion for the First Phase. Upon closing the First Phase, ELC expects to have a non-cash gain on its initial investment.Excluding this gain, DECIEM’s net sales and earnings are expected to have a negligible impact on ELC’s fiscal year 2021 consolidated results. The acquisition is subject to certain conditions, including regulatory approvals and is expected to close in the quarter ending June 30, 2021. These U.S. dollar amounts were translated at average exchange rates for net sales and current exchange rates for transaction values.The purchase price for the remaining interest in the Second Phase will be determined based on the future performance of DECIEM.

DECIEM’s portfolio currently encompasses six brands, including The Ordinary, an internationally popular skin care brand with impressive community- and referral-driven buzz reflecting a deep connection with its global consumer base of skin care devotees. DECIEM’s range of “functional beauty” brands and products are sold primarily through DECIEM-owned and retailer e-commerce sites and specialty-multi stores, as well as its own freestanding stores, primarily in the United States, United Kingdom and Canada.

In this transaction, Perella Weinberg Partners served as financial advisor to The Estée Lauder Companies Inc., while Lowenstein Sandler LLP and Osler, Hoskin & Harcourt LLP served as legal counsel. The other owners of DECIEM received financial advice from Baylor Klein Limited, Fasken Martineau DuMoulin LLP acted as joint counsel for the selling shareholders, while each of Farris LLP and Gowling WLG (Canada) LLP acted as independent counsel, in each case, for one of the selling shareholders. Blake, Cassels & Graydon LLP acted as corporate counsel for DECIEM Beauty Group Inc.

Gowling WLG (Canada) LLP acted as counsel in representing DECIEM’s operational interests.

The forward-looking statements in this press release, including those in the quoted remarks and those relating to the expected closing date, expectations for the acquired company and the benefits of the acquisition, involve risks and uncertainties. Factors that could cause actual results to differ materially from those forward-looking statements include the ability of the parties to satisfy the closing conditions under the definitive purchase agreement, current economic and other conditions in the global marketplace, actions by retailers, suppliers and consumers, competition, ELC’s ability to work with the continuing management and other investors in DECIEM and successfully integrate the acquired business and/or implement its long-term strategic plan, and those risk factors described in ELC’s annual report on Form 10-K for the year ended June 30, 2020.

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 approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, Tommy Hilfiger, M·A·C, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, TOM FORD BEAUTY, Smashbox, Ermenegildo Zegna, AERIN, RODIN olio lusso, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, BECCA, Too Faced and Dr. Jart+.

ELC-C
ELC-F

Contact information

Media Relations:
Jill Marvin
jimarvin@estee.com

Investor Relations:
Rainey Mancini
rmancini@estee.com

About Business Wire

Business Wire
Business Wire



Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

L&T Technology Services Selected by Airbus for Skywise Partner Programme25.2.2021 08:04:00 CETPress release

L&T Technology Services (NSE: LTTS), a leading global pure-play engineering services company, announced that it has been selected by Airbus to provide technology and digital engineering solutions for Airbus’ Skywise platform as part of the ‘Skywise Partner Programme’. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210224006261/en/ Abhishek Sinha, Chief Operating Officer and Board Member LTTS with Rémi Maillard, President & Managing Director, Airbus India & South Asia, commemorate LTTS joining the Skywise Partner Program (Photo: Business Wire) With more than 130 airlines around the world already connected to Skywise, the platform is playing a very important part in enabling and accelerating digital transformation of the aviation sector as a whole. LTTS will support the airlines in the development of complex workflows, creation of new interfaces between their existing information systems and Skywise and also provide assistance

Ecoppia Strengthens Its Presence in the Middle East with a first Project in Egypt25.2.2021 08:00:00 CETPress release

Ecoppia (TASE:ECPA), the pioneer and world leader in robotic solutions for photovoltaic solar, announced today a new project in one of the worlds’ largest solar parks in BenBan, Egypt. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210224005973/en/ Ecoppia's light-weighted T4 solution, designed especially for Single Axis trackers. Completely autonomous, water-free, and energy independent. (Photo: Business Wire) BenBan solar park, located near the southern Egyptian city of Aswan, has a total capacity of 1,650 MWp corresponding to an annual production of approximately 3.8 TW, and is spread across nearly 40 km. While enjoying very high radiation rates, the facility also suffers from major soiling and desert sands, requiring frequent cleaning to ensure steady and optimal production. Ecoppia’s robotic solutions were proven to be extremely effective, cleaning nearly 10 million solar panels every night in harsh climatic conditions,

SES S.A.: Full Year 2020 Results25.2.2021 07:30:00 CETPress release

SES S.A. announces financial results for the year ended 31 December 2020. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210224006241/en/ SES S.A.: Full Year 2020 Results Third successive year delivering EBITDA outlook despite challenging COVID-19 environment in 2020 Growth engine Networks revenue +5% YOY(1,2), or +27% since 2017, and Video revenue of €1,108 million in line with expectations Adjusted EBITDA(3) of €1,152 million delivered within pre-COVID-19 financial outlook and at high end of mid-year outlook Strong net cash generated from operations of €1,049 million representing 97% of reported EBITDA Commitment to disciplined financial policy and shareholder returns Solid cash flow generation driving €505 million YOY debt reduction and lowest leverage ratio(4) (of 2.97 times) over the past 5 years Proposed 2020 dividend of €0.40 per A-share consistent with commitment to maintain a minimum base dividend of €0.40 On track

SES Extends Long-Term Partnership With Sky25.2.2021 07:00:00 CETPress release

Sky UK has extended its contract with SES for satellite capacity in a new agreement that will add over EUR 90 million in secured backlog. This renewal is in addition to capacity already under contract that extends through 2027. By the end of the renewed contract, Sky UK will have been an SES customer continuously for almost four decades, illustrating the strength and value of the partnership to Sky UK’s business in terms of the reliability, performance, high-quality viewing experience and the reach of SES’s satellite services. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210224006139/en/ SES Extends Long-Term Partnership With Sky (Photo: Business Wire) As part of the contract, SES will deliver Sky UK’s channels in a mix of standard definition (SD), high definition (HD) and ultra-high definition (UHD) from the 28.2/28.5 degrees East orbital slots to the operator’s subscribers across the United Kingdom and Republic of Irelan

ADVA announces record Q4 2020 results and reports full year 2020 figures25.2.2021 07:00:00 CETPress release

ADVA (ISIN: DE0005103006), a leading provider of open networking solutions for the delivery of cloud and mobile services, reported financial results for Q4 2020 and full year 2020 ended on December 31, 2020. The results have been prepared in accordance with International Financial Reporting Standards (IFRS). This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210224005994/en/ Brian Protiva, CEO, ADVA (Photo: Business Wire) Q4 2020 financial summary1 (in thousands of EUR) Q4 Q4 Change Q3 Change 2020 2019 2020 Revenues 140,572 151,135 -7.0% 146,676 -4.2% Pro forma gross profit 54,641 54,633 0.0% 51,930 5.2% in % of revenues 38.9% 36.1% 2.8pp 35.4% 3.5pp Pro forma operating income 14,343 10,333 38.8% 11,053 29.8% in % of revenues 10.2% 6.8% 3.4pp 7.5% 2.7pp Operating income (loss) 13,085 5,438 140.6% 9,768 34.0% Net income 13,249 2,522 425.3% 6,671 98.6% (in thousands of EUR) Dec. 31 Dec. 31 Change Sep. 30 Change 2020 2019 2020 Cash

Protembis Announces Completion of 20 Cases in European CE Mark Study With the ProtEmbo ® Cerebral Protection System25.2.2021 06:15:00 CETPress release

Protembis GmbH, a privately held emerging medical device company, announced today the successful completion of 20 clinical cases in its European regulatory study of the ProtEmbo® Cerebral Protection System. The ProtEmbo® System is an intra-aortic filter device that deflects embolic material away from the brain during transcatheter aortic valve replacement (TAVR). The device is a low profile system which is delivered through the left radial artery, an ideal access site enabling physicians to avoid interference with TAVR equipment, typically delivered through the left femoral artery. Nikos Werner, M.D., Professor of Medicine, Head of Cardiology at the Heart Center Trier, Germany, and Principal Investigator in Germany commented: “Embolic protection in TAVR procedures has been shown to be effective in reducing the ischemic burden in the brain, but physicians look forward to next generation devices that are easy to use, cover all three potential access arteries to the brain, and can be simp

Wipro Marks 25 Years of Partnership With Cisco; Launches Cisco Business Unit25.2.2021 06:00:00 CETPress release

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading global information technology, consulting, and business process services company, is celebrating the 25th anniversary of its business partnership with Cisco (NASDAQ: CSCO), the worldwide leader in technology that powers the Internet. To commemorate this milestone, Wipro is launching the Cisco Business Unit that will focus on the development and adoption of end-to-end digital transformation solutions leveraging Cisco technologies for customers. This strategic initiative demonstrates Wipro’s commitment to its business relationship with Cisco. Also, it is a growth accelerator for the successful and well-established 360-degree partnership of several years. Over the course of 25 years, Wipro has focused on delivering its transformative service capabilities across Digital, Cloud, Security, and Engineering, which are aligned with Cisco’s operational priorities. Wipro and Cisco co-develop communications, infrastructure, and security

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom