Estee Lauder has acquired luxury manner label Tom Ford for US$2.8 billion, marking Estee Lauder’s biggest acquisition but.
At the time the offer is accomplished next yr, Estee Lauder will grow to be the sole proprietor of the Tom Ford brand name and all of its mental residence. The business expects to fund this transaction via a mixture of cash, credit card debt and $300 million in deferred payments to the sellers that turn into because of starting July 2025.
“As an owned brand, this strategic acquisition will unlock new options and fortify our expansion designs for Tom Ford Splendor,” mentioned Fabrizio Freda, president and CEO at Estee Lauder.
“It will also further more assist to propel our momentum in the promising class of luxury splendor for the for a longer time time period, when reaffirming our commitment to becoming the major pure player in world wide status splendor.”
Beneath the settlement, Tom Ford, founder and CEO of Tom Ford Global, will go on to provide as the brand’s imaginative visionary soon after closing and by means of the finish of following year. Domenico De Sole, chairman of Tom Ford International, will continue to be on as a advisor until eventually that time.
The owner of the Zegna and Thom Browne model, Ermenegildo Zegna Team has also signed an arrangement to enter a lengthy-expression license for Tom Ford fashion with Estee Lauder. As aspect of this transaction, Zegna will acquire operations of the Tom Ford trend business vital to complete its obligations as a licensee. The brand’s latest license with Marcolin will also be significantly prolonged.