Estee Lauder to buy Tom Ford in US$2.8 billion deal

Estee Lauder to buy Tom Ford in US$2.8 billion deal

Estee Lauder has acquired luxury vogue label Tom Ford for US$2.8 billion, marking Estee Lauder’s most significant acquisition but. 

The moment the deal is concluded following 12 months, Estee Lauder will develop into the sole owner of the Tom Ford brand and all of its mental property. The business expects to fund this transaction by way of a mix of income, financial debt and $300 million in deferred payments to the sellers that turn out to be thanks starting July 2025.

“As an owned model, this strategic acquisition will unlock new chances and fortify our development plans for Tom Ford Elegance,” said Fabrizio Freda, president and CEO at Estee Lauder. 

“It will also even further enable to propel our momentum in the promising class of luxurious beauty for the lengthier phrase, though reaffirming our dedication to being the main pure participant in world status attractiveness.”

Less than the agreement, Tom Ford, founder and CEO of Tom Ford International, will proceed to serve as the brand’s inventive visionary immediately after closing and by way of the end of future yr. Domenico De Sole, chairman of Tom Ford Worldwide, will stay on as a advisor till that time.

The operator of the Zegna and Thom Browne manufacturer, Ermenegildo Zegna Team has also signed an arrangement to enter a prolonged-phrase license for Tom Ford fashion with Estee Lauder. As element of this transaction, Zegna will acquire functions of the Tom Ford trend business enterprise required to carry out its obligations as a licensee. The brand’s existing license with Marcolin will also be considerably prolonged.