DECIEM (The Ordinary)
2024
Why
Complete ownership of DECIEM after a minority stake in 2017 and majority stake in 2021.
Impact
The Ordinary was a named driver of skin care growth in fiscal 2026.
Outcome
Fully owned since 2024.
The Estée Lauder Companies Inc.
Prestige Beauty and CosmeticsFounded 1946- HQ today: New York, New York
Reviewed by Swet Parvadiya
Company data updated: October 2026
Acquisitions
Estée Lauder Acquisitions
4
Major Deals Covered
$3.9B
Disclosed Deal Value
What are Estée Lauder's biggest acquisitions?
Estée Lauder's largest disclosed acquisition here is Tom Ford for $2.8B in 2023. This page covers 4 major deals from 1998 to 2024, each with its price where disclosed and the reason behind it.
- Major deals covered
- 4
- Largest deal
- Tom Ford ($2.8B)
- First deal
- 1998
- Most recent
- 2024
| Company | Year | Price | Purpose |
|---|---|---|---|
| MAC Cosmetics | 1998 | Undisclosed | Add a professional-artistry makeup brand with appeal to younger and more diverse consumers. |
| Have & Be Co. (Dr.Jart+) | 2019 | $1.1B | Enter Korean skin care with Dr.Jart+. |
| Tom Ford | 2023 | $2.8B | Secure ownership of the Tom Ford brand and its fast-growing luxury fragrance business. |
| DECIEM (The Ordinary) | 2024 | Undisclosed | Complete ownership of DECIEM after a minority stake in 2017 and majority stake in 2021. |
- What companies has Estée Lauder bought?
- Major acquisitions by Estée Lauder documented here include Tom Ford (2023), Have & Be Co. (Dr.Jart+) (2019), DECIEM (The Ordinary) (2024) and MAC Cosmetics (1998).
- What is Estée Lauder's most recent acquisition?
- The most recent Estée Lauder acquisition documented here is DECIEM (The Ordinary), in 2024.
Tom Ford
2023
$2.8B
Why
Secure ownership of the Tom Ford brand and its fast-growing luxury fragrance business.
Impact
Largest deal in company history; fashion and eyewear are licensed to Zegna and Marcolin.
Outcome
Tom Ford fragrance remains a core luxury fragrance brand.
Have & Be Co. (Dr.Jart+)
2019
$1.1B
Why
Enter Korean skin care with Dr.Jart+.
Impact
Gave the company its first major Asian-founded brand.
Outcome
Later weighed on results and contributed to impairment charges.
MAC Cosmetics
1998
Why
Add a professional-artistry makeup brand with appeal to younger and more diverse consumers.
Impact
MAC became one of the company's largest makeup brands.
Outcome
Acquired in stages between 1994 and 1998.
The Estée Lauder Companies Inc.'s Growth & Acquisition Strategy
Under Beauty Reimagined, Estée Lauder is concentrating investment on hero products and faster innovation, expanding into channels where prestige shoppers now buy (including Amazon's U.S. Premium Beauty store and wider specialty retail), diversifying away from Asia travel retail, and running the business through a leaner "One ELC" operating model. The Profit Recovery and Growth Plan funds this through procurement savings, lower excess inventory and job reductions of roughly 5,800 to 7,000 positions.
How The Estée Lauder Companies Inc. Makes Money
Estée Lauder makes money by developing, manufacturing and marketing prestige skin care, makeup, fragrance and hair care products, then selling them at premium prices through department stores, specialty retailers such as Sephora and Ulta Beauty, travel retail (duty-free), salons, its own freestanding stores and brand websites, and third-party platforms. Skin care (La Mer, Estée Lauder, Clinique, The Ordinary) is the largest category, followed by makeup (MAC, Clinique, Estée Lauder, Bobbi Brown) and fragrance (Jo Malone London, Tom Ford, Le Labo, Kilian Paris). Brand equity supports a gross margin of about 75%, but the model is costly to run: advertising, sampling, point-of-sale beauty advisors and selling expenses absorb most of that margin, which is why operating margin is the number investors watch.
Estée Lauder Acquisitions FAQ
What was the strategic importance of Estée Lauder's acquisition of MAC Cosmetics in 1998?
Estée Lauder acquired Canadian professional makeup brand Make-up Art Cosmetics (MAC) in phases between 1994 and 1998 for approximately $130 million. MAC provided Estée Lauder with an edgy, professional artistry brand that dominated the makeup category and resonated strongly with diverse, younger consumers worldwide.
How did the acquisition of Bobbi Brown in 1995 expand Estée Lauder's cosmetics footprint?
Estée Lauder acquired Bobbi Brown Essentials in 1995, just four years after the makeup artist founded the line. The acquisition brought a natural, neutral-toned makeup aesthetic into the portfolio, complementing Estée Lauder's traditional glamour lines.
What was the impact of acquiring Jo Malone London in 1999?
Estée Lauder acquired British fragrance house Jo Malone London in 1999. Under Estée Lauder's global distribution, Jo Malone grew into an international luxury lifestyle leader renowned for bespoke fragrance combining, well-known cream-and-black gift packaging, and home scented candles.
How did the acquisition of Aveda in 1997 establish Estée Lauder in prestige hair care?
In 1997, Estée Lauder acquired environmental pioneer Aveda Corporation for $300 million. Aveda gave Estée Lauder instant leadership in plant-based, professional salon hair care, botanical styling products, and eco-friendly manufacturing.
Why was the 2014 acquisition of Le Labo a critical milestone in artisanal fragrance?
Estée Lauder acquired cult fragrance brand Le Labo in 2014. Famous for its minimalist apothecary aesthetic and freshly hand-compounded perfumes (such as Santal 33), Le Labo became one of the fastest-growing and highest-margin brands in the company's luxury portfolio.
How did the acquisition of Dr.Jart+ in 2019 expand Estée Lauder's K-Beauty capabilities?
In December 2019, Estée Lauder acquired Have & Be Co. (owner of Dr.Jart+ and Do The Right Thing) for an enterprise value of approximately $1.1 billion. The acquisition was Estée Lauder's first takeover of an Asian beauty brand, bolstering its clinical skincare and mask portfolio.
Why did Estée Lauder acquire the Tom Ford luxury brand for $2.8 billion in 2023?
In April 2023, Estée Lauder completed the acquisition of the Tom Ford brand for $2.8 billion. Having successfully licensed Tom Ford Beauty since 2006, the acquisition secured permanent intellectual property ownership of the high-growth luxury beauty and fragrance business while licensing Tom Ford fashion and eyewear to Ermenegildo Zegna and Marcolin.
How did Estée Lauder acquire DECIEM and The Ordinary?
Estée Lauder took a minority stake in DECIEM in 2017, raised it to a majority in 2021 and completed full ownership in 2024.
What companies does Estée Lauder own?
To maintain massive luxury dominance, they aggressively acquire prestige brands. They bought MAC Cosmetics in 1998, Jo Malone in 1999, Too Faced for $1.4B in 2016, and executed a massive $2.8 billion acquisition of the entire Tom Ford brand in 2022 to dominate high-end fragrance.
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