The Estée Lauder Companies Inc. is set to acquire the Tom Ford luxury fashion brand in its entirety for $2.8 billion. Estée Lauder expects to fund this transaction through a combination of cash, debt, and $300 million in deferred payments to the sellers that become due beginning in July 2025.
Fashion designer Tom Ford founded his luxury brand in 2005. The company offers menswear primarily but also markets women’s apparel, handbags, cosmetics and perfumes as part of its product line.
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Ford will continue to serve as the brand’s creative visionary after closing and through the end of calendar 2023. Domenico De Sole, Chairman of Tom Ford International, will stay on as a consultant until that same time.
“We are incredibly proud of the success TOM FORD BEAUTY has achieved in luxury fragrance and makeup and its dedication to creating desirable, high-quality products for discerning consumers around the world. As an owned brand, this strategic acquisition will unlock new opportunities and fortify our growth plans for Tom Ford Beauty,” Estée Lauder Companies President and CEO Fabrizio Freda said in a statement. “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.”
Tom Ford said, “I could not be happier with this acquisition as The Estée Lauder Companies is the ideal home for the brand. They have been an extraordinary partner from the first day of my creation of the company and I am thrilled to see them become the luxury stewards in this next chapter of the Tom Ford brand.”
The Estée Lauder Companies Inc. is a manufacturer, marketer, and seller of skincare, makeup, fragrance, and hair care products. The company’s products are sold in approximately 150 countries and territories under brand names.
