The Estée Lauder Companies (ELC) is increasing its investment in Deciem from 29 percent to a majority stake of 76 percent. The company will pay $1 billion for 47 percent, or a 4.6x sales multiple, bringing Deciem’s total enterprise value to $2.2 billion. The deal is expected to close by June 30. ELC has agreed to purchase the remaining portion of the company after a three-year period, with the cost to be determined based upon Deciem’s future performance. Since ELC’s initial investment in June 2017, the Canadian-based skin care company has achieved net sales of $460 million for the year ended January 31.

Founded in 2013 by the late Brandon Truaxe, Deciem’s portfolio is comprised of six brands, including The Ordinary and NIOD. Brandon developed the company alongside Pasquale Cusano and Nicola Kilner with the vision of bringing simple formulas, clinical level efficacy, marketing authenticity and ingredient transparency to the beauty market. Nicola now leads Deciem as CEO. Deciem’s range of 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. According to Jefferies, “Deciem brings a value price point to Lauder’s prestige and luxury oriented portfolio. The brand is heavily driven by its DTC/brand.com business, with very strong social engagement and a pace of newness that rivals fast-turning beauty disruptors. We’d expect Lauder to leverage its DTC heft and global market distribution to support further brand growth, especially as derm and clean are themes tracking in multiple international markets.”