Tom Ford attends the CFDA Fashion Awards at The Pool and The Grill on November 10, 2021, in New York. Estée Lauder is acquiring luxury powerhouse Tom Ford in a $2.8 billion deal.
Evan Agostini/Invision/AP
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Tom Ford attends the CFDA Fashion Awards at The Pool and The Grill on November 10, 2021, in New York. Estée Lauder is acquiring luxury powerhouse Tom Ford in a $2.8 billion deal.
Evan Agostini/Invision/AP
Estee Lauder Cos. is acquiring luxury fashion house Tom Ford in a deal worth $2.8 billion, marking the beauty company’s largest acquisition.
As part of the agreement announced Tuesday, the Ermenegildo Zegna Group and Marcolin SpA will enter into long-term licensing agreements for Tom Ford fashion and Tom Ford eyewear, respectively.
While Estée Lauder said the deal values the total business at $2.8 billion, the New York-based beauty company is expected to pay around $2.3 billion, after the $250 million payment from Italian eyewear maker Marcolin SpA.
The sale, subject to regulatory approval, is expected to close in the first half of 2023.
Under the agreement, Tom Ford, founder and CEO of Tom Ford International, will remain the brand’s creative visionary until the end of 2023. Domenico De Sole, president of Tom Ford International, will continued to serve as an advisor until the same time.
Estée Lauder introduced the Tom Ford Beauty line in 2006. During Estée Lauder’s fiscal year ending June 30, the brand’s net sales increased nearly 25% year over year. The beauty company says that over the next few years, it expects the beauty line to bring in $1 billion in net sales.
Fabrizio Freda, president and chief executive officer of Estée Lauder, said in a statement: “This strategic acquisition will open new opportunities and strengthen our growth plans for Tom Ford. Beauty. “It will also help fuel our momentum in the promising long-term luxury beauty sector, while reaffirming our commitment to being a pure leading player in the beauty industry.” beautiful and prestigious worldwide.”
Estée Lauder said it aims to finance the acquisition through a combination of cash, debt and $300 million in deferred payments to sellers due beginning in July 2025.
