Beauty

The Estée Lauder Companies finalises Tom Ford brand acquisition in US$2.8 billion deal

THE WHAT? The Estée Lauder Companies (ELC) has announced it has signed an agreement to acquire the Tom Ford brand and all its intellectual properties in a deal worth US$2.8 billion. 

THE DETAILS The amount to be paid by ELC for the acquisition is approximately US$2.3 billion, net of a US$250 million payment to ELC at closing from Marcolin S.p.A. 

ELC expects to fund the transaction through a combination of cash, debt and US$300 million in deferred payments to the sellers that become due beginning in July 2025.

As part of the deal, Tom Ford, Founder and CEO of Tom Ford International, 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.

According to a press release: “The deal will extend and expand the Tom Ford brand’s longstanding relationship with Ermenegildo Zegna to include a long-term license for all men’s and women’s fashion as well as accessories and underwear. 

“As part of this transaction, Zegna will acquire operations of the Tom Ford fashion business necessary to perform its obligations as licensee. ELC and Zegna will align closely on the creative direction to continue building on the luxury positioning of the Tom Ford brand.”

THE WHY? The buy out is said to allow the extension of Tom Ford brand’s current licensing partners, and 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.’ 

Fabrizio Freda, President and Chief Executive Officer, The Estée Lauder Companies, said: “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. 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.”

The post The Estée Lauder Companies finalises Tom Ford brand acquisition in US$2.8 billion deal appeared first on Global Cosmetics News.

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in Beauty