The Estée Lauder Companies Inc. has acquired the luxury fashion brand Tom Ford in a deal valued at $2.8 billion (Dhs10.2 billion).
It’s the biggest deal to date for the beauty firm, which owns beauty brands including Jo Malone London, Le Labo, La Mer and more.
Fashion powerhouse Tom Ford will remain in his position as creative director of his eponymous brand until the end of 2023, according to a statement issued by Estée Lauder (ELC).
The statement also said that the acquirement of the brand under the ELC umbrella “will allow for continuity and the further evolution of the Tom Ford brand as one of the preeminent global luxury brands of the twenty-first century”.
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ELC will pay $2.3 billion for the luxury brand, which was first launched by the designer in 2005, which will be followed by an additional $300 million in deferred payments to be paid out starting July 2025.
The luxury beauty conglomerate already held the licensing agreements to Tom Ford Beauty and fragrances until 2030, but this deal now acquires the brand as a whole, but the fashion side of the brand will be licensed out to Zegna, which previously owned a 15 per cent stake in Tom Ford.
“This strategic acquisition will unlock new opportunities and fortify our growth plans for Tom Ford Beauty,” Fabrizio Freda, president and chief executive of Estee Lauder, said. It will also further help to propel our momentum in the promising category of luxury beauty for the long-term, while reaffirming our commitment to being the leading pure player in global prestige beauty.”
Meanwhile, Ford himself said in a statement he “couldn’t be happier with this acquisition”.
The entire deal is expected to be completed by the end of next year.
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