Various sources have revealed that several industry giants are currently engaged in talks to acquire the fashion brand led by its renowned founder, Tom Ford. Among the potential buyers, luxury conglomerate Kering seems to be the frontrunner in the race to acquire the American brand. This development, reported by the Wall Street Journal, has sent ripples through the entire fashion industry.
Established by designer Tom Ford in 2005, the American brand is expected to undergo significant development under its new ownership. Tom Ford, who recently stepped down as president of the Council of Fashion Designers of America (CFDA), is renowned for his glamorous aesthetic, strategic market insight, and his active role in raising awareness about plastic pollution.
Kering has emerged as the most likely candidate to lead the acquisition of Tom Ford, driven by its impressive double-digit growth in recent months. In the third quarter of 2022, the French company witnessed a remarkable 23% increase compared to the previous year and a remarkable 28% increase compared to 2019. While no agreement has been finalized, Kering’s extensive expertise in fashion and luxury, illustrated by its successful brands Balenciaga, Gucci, and Saint Laurent, positions it favorably in this acquisition race.
On the other hand, Estée Lauder Companies has also expressed interest in acquiring Tom Ford. Last August, the Wall Street Journal reported that the cosmetics group was in talks for a potential agreement valued at over $3 billion, which would mark the largest transaction in its history. While Estée Lauder already holds the Tom Ford beauty license in its portfolio, the company experienced an 11% drop in revenue in the first quarter of its 2023 fiscal year, amounting to $3.93 billion. This decline is expected to persist in the forthcoming months, impacting annual results and posing challenges to its acquisition prospects.
The discussions surrounding the acquisition of Tom Ford continue, and other potential buyers may yet come into play. As we await an official announcement from the involved parties, the question remains: which luxury player will soon incorporate Tom Ford into its prestigious brand network? Keep an eye out for further updates on this noteworthy development.
