Estée Lauder To Pay $1bn For Controlling Stake In Ordinary Skincare Owner
Cosmetics maker Estée Lauder Cos Inc has offered about $1 billion to take control of DECIEM Beauty Group Inc, the parent company of Ordinary skincare brand.
The M.A.C brand owner, which is raising its stake to about 76% from about 29%, said it had agreed to purchase the remaining interest in the company after a three-year period.
DECIEM recorded net sales of about $460 million for the 12 months ended 31 January, with the United States, the UK and Canada accounting for a major portion of its business.
The company net sales and earnings would have a negligible impact on Estée Lauder's fiscal year 2021 consolidated results, the company said. The deal is expected to close in the quarter ending 30 June.
Recently, the cosmetics giant reported a surprise rise in second-quarter sales driven by a strong demand for its premium skin-care products and fragrances in China.