Estee Lauder to pay $1 billion for controlling stake in Ordinary skincare owner

Business

Cosmetics maker Estee Lauder Cos Inc said on Tuesday it had 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 Jan. 31, 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 Estee Lauder’s fiscal year 2021 consolidated results, the company said. The deal is expected to close in the quarter ending June 30.