Estée Lauder Cos Inc has made a monumental move in the fashion industry by acquiring Tom Ford for an astonishing $2.8 billion. This significant deal puts Estée Lauder in a leading position, surpassing other potential buyers such as French luxury conglomerate Kering.

Under the agreement, Tom Ford will remain the creative visionary for his brand until the end of 2023. Domenico De Sole, chairman of Tom Ford international, will also contribute as a consultant during this period. This ensures continuity and a seamless transition for the brand.

This acquisition is a historic moment for Estée Lauder, marking their largest deal to date. It also strengthens the collaboration between Tom Ford and Ermenegildo Zegna. The agreement includes a long-term license for the production of men’s and women’s fashion, as well as accessories and underwear. Zegna will take on the operations of Tom Ford’s fashion business as part of their obligations as a licensee.

Furthermore, the current license between Tom Ford and eyewear manufacturer Marcolin will be extended significantly. Estée Lauder will pay approximately $2.3 billion, after deducting a $250 million payment to Marcolin, for the acquisition. Estée Lauder already holds the license for Tom Ford Beauty, a highly successful fragrance and makeup line that was launched in partnership with the company in 2006.

Fabrizio Freda, the CEO of Estée Lauder, expressed his pride in the success of Tom Ford Beauty and highlighted the brand’s dedication to delivering top-quality products to discerning consumers worldwide. He sees this acquisition as an opportunity for growth and a reaffirmation of Estée Lauder’s position as a global leader in the prestige beauty industry.

Rumors about the potential sale of the Tom Ford brand began circulating in July, and Estée Lauder emerged as the frontrunner in August. However, Kering also showed interest in the acquisition in early November. Ultimately, Estée Lauder emerged victorious in securing the luxury brand.

Tom Ford himself expressed his gratitude towards Estée Lauder, referring to them as an extraordinary partner. He is excited for them to become the “luxury stewards” of the brand. Ford also praised long-standing partners Ermenegildo Zegna and Marcolin for their commitment to quality, expressing confidence in their ability to maintain the brand’s luxury status in the future.

This acquisition signifies another milestone for the Estée Lauder Companies as they continue to expand their portfolio and strengthen their presence in the luxury fashion industry. With Tom Ford joining their ranks, Estée Lauder is well-positioned for even greater success in the years to come.

Useful links:
Estée Lauder Official Website
Tom Ford Official Website