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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.

Negligible Impact

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.

News by Reuters edited by Checkout. Click subscribe to sign up for the Checkout print edition.

 

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