Estée Lauder Cos Inc has made a significant move in the fashion industry with its acquisition of Tom Ford for a whopping $2.8 billion. This deal outbid rival company Kering, establishing Estée Lauder as the clear winner in the bidding process.
Founder and CEO of Tom Ford, Tom Ford himself, will remain the creative visionary for the brand until the end of 2023. Domenico De Sole, Chairman of Tom Ford International, will also continue his role as a consultant until that time. This ensures that the brand will maintain its unique style and creative direction under Ford’s leadership.
Notably, this acquisition marks Estée Lauder’s largest purchase thus far and strengthens the existing relationship between Tom Ford and Ermenegildo Zegna. As part of the agreement, Zegna will obtain a long-term license for all men’s and women’s fashion, accessories, and underwear. Additionally, Tom Ford’s partnership with global eyewear manufacturer Marcolin will be significantly extended.
The financials of the acquisition involve Estée Lauder paying approximately $2.3 billion, after deducting a $250 million payment from Marcolin to the beauty company at closing. Estée Lauder already holds the license for Tom Ford Beauty, a successful fragrance and makeup line that was launched in collaboration with Tom Ford in 2006.
Fabrizio Freda, CEO of the Estée Lauder Companies, expressed his satisfaction with the success of Tom Ford Beauty and emphasized the growth potential of the acquisition. He believes this purchase will contribute to the company’s long-term momentum in the luxury beauty sector, solidifying Estée Lauder’s position as a leading player in global prestige beauty.
Rumors of a potential sale of the Tom Ford brand have been circulating since July of this year. Initially, it was widely reported that Estée Lauder was the frontrunner. However, FashionNetwork.com revealed in November that Kering had also expressed interest in the sale.
Tom Ford himself also expressed excitement about the acquisition and praised Estée Lauder as an extraordinary partner. He highlighted the continued partnerships with Ermenegildo Zegna and Marcolin, expressing his belief in their ability to maintain the brand’s commitment to luxury and quality.
The acquisition of Tom Ford by Estée Lauder is expected to bring new opportunities and drive growth for the Tom Ford Beauty line. This strategic move further solidifies Estée Lauder’s position in the luxury beauty market and showcases their dedication to excellence in the industry.
Useful links:
1. Estée Lauder
2. Tom Ford
