The Estée Lauder Companies Inc.

The Estée Lauder Companies Inc. in its agreement to increase its ownership in DECIEM Beauty Group Inc.

Client

The Estée Lauder Companies Inc.

Value

US$2.2 billion

Service

Mergers and Acquisitions

Date Closed

May 2021

Industry

Retail and Consumer Products

Lead Office

Toronto

On February 23, 2021, The Estée Lauder Companies Inc. (ELC) announced that it has entered into an agreement to increase its investment in the Canadian-based, vertically integrated, multi-brand company, DECIEM Beauty Group Inc. from approximately 29% to approximately 76%. ELC has agreed to purchase the remaining interests after a three-year period.

The transaction is expected to close in the quarter ending June 30, 2021. The amount to be paid by ELC at closing is approximately US$1.0 billion, reflecting a total enterprise value of approximately US$2.2 billion for the first phase of the agreement.

ELC is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products.

Known as “The Abnormal Beauty Company”, DECIEM is an industry disruptor with a consumer-focused approach. Its 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, the United Kingdom and Canada.

Osler, Hoskin & Harcourt LLP advised ELC with a team consisting of Manny Pressman, John Valley, Kojo Hayward and Jesany Killam-Michel (Corporate), Patrick Marley, Taylor Cao and Jennifer Horton (Tax), Lynne Lacoursière and Kelly O’Ferrall (Employment and Benefits), Michelle Lally and Kaeleigh Kuzma (Regulatory), Patrick Welsh (Environmental), and Mark Gelowitz and Robert Carson (Litigation).