Estée Lauder Companies has signed a pivotal deal valued at $2.8 billion to become the sole owner of the Tom Ford brand and its intellectual property. Currently pending approval, the deal is expected to close in the first half of 2023.
The agreement will extend and further develop the Tom Ford brand’s relationship with Ermenegildo Zegna to include a long-term licence for men’s and women’s fashion, accessories and underwear. The brand’s current licence with Marcolin will also be extended.
Under Estée Lauder’s ownership, Tom Ford, Founder and CEO of Tom Ford International, will remain as the brand’s creative visionary until the end of 2023. Domenico De Sole, chairman of Tom Ford International, will also stay as a consultant during that period.
Tom Ford stated that Estée Lauder 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. Ermenegildo Zegna and Marcolin have been spectacular long-standing partners as well and I am happy to see the preservation of the great relationship that we have built over the past 16 years. With their full commitment, I trust they will continue the brand’s future as a luxury company that strives to produce only the highest quality fashion and eyewear.”
President and Chief Executive Officer of Estée Lauder, Fabrizio Freda, noted that the strategic acquisition will enable new opportunities and strengthen Estée Lauder’s development 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.”
Tom Ford Beauty is expected to outperform industry growth in luxury fragrance and makeup. The brand has also acquired strong momentum across many key markets, with its fragrance ranking in the top fifteen in the United States and top ten in China. Tom Ford Beauty is predicted to reach an annual net sales of one billion dollars in the next few years.
