According to an article by Vogue Business, Tom Ford fashion has been acquired by Estée Lauder Companies in a deal valued at US$2.8 billion, the beauty brand owner's biggest deal to date.
The acquisition includes Tom Ford's apparel, accessories and eyewear businesses, marking ELC's first step into fashion.
Tom Ford’s ready-to-wear will be produced under license by Ermenegildo Zegna Group, who also owns Thom Browne.
The brand’s namesake and founder, Tom Ford, will step down as CEO and creative lead at the end of 2023. Additionally, chairman Domenico De Sole, will remain as a consultant during this time.
“Estée Lauder Companies is the ideal home for the brand,” Ford said in a statement. “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.”
The move follows months of speculation about who was going to buy Tom Ford, following news in July that the luxury brand had hired investment bank, Goldman Sachs, to explore a potential sale.
Estée Lauder Companies is renowned for its makeup, skincare and perfume brands, including Estée Lauder, La Mer, MAC Cosmetics and Clinique. It also already owns the beauty licence to several luxury brands, including Tom Ford Beauty, which it launched in 2006.
The new deal is expected to provide creative oversight of the Tom Ford Beauty business, as well as increased speed and agility and opportunities for further online penetration. Some other benefits include gaining the long-term cash flow from owning the Tom Ford Beauty brand, beyond its existing licence expiring in 2030.
“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,” said Estée Lauder Companies president and CEO, Fabrizio Freda.
“As an owned brand, this strategic acquisition will unlock new opportunities and fortify our growth plans for Tom Ford Beauty. 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.”
