Estée Lauder to Acquire Tom Ford in $2.8 Billion Deal
Estée Lauder Companies is acquiring its longtime partner Tom Ford, bringing the two American luxury beauty and fashion labels together, the companies announced Tuesday. Tom Ford, who created the high-end apparel, beauty, eyewear and accessories brand in 2005, will sell for $2.8 billion, making this the largest deal in the luxury industry this year, according to The New York Times. Ford will continue to serve as the brand's creative visionary through the end of 2023, according to a press release from Estée Lauder Companies. Estée Lauder began partnering with Tom Ford 16 years ago.
While the deal is valued at $2.8 billion, Estée Lauder is expected to pay roughly $2.3 billion, after a $250 million payment from Marcolin SpA, which currently owns the license for Tom Ford's eyewear brand. The entire purchase is slated to be completed in the first half of 2023.
Total Retail's Take: This deal allows Estée Lauder to expand its product offerings, bringing apparel to a company that has been strictly focused on beauty — particularly luxury perfumes — thus far. Tom Ford's beauty line, which he introduced in 2006, largely drove the sale, and Estée Lauder said it's expected to outperform industry growth over the coming years. The company said it expected Tom Ford Beauty to achieve annual net sales of $1 billion over the next couple of years.
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- Tom Ford
Marie Albiges is the managing editor for Women in Retail, Total Retail, and Women Leading Travel & Hospitality. She is responsible for content development, management and production for the group. Marie is a former journalist, a travel aficionado, a French native and fitness enthusiast who lives in Philadelphia with her partner, stepdaughter and dog.
