Estée Lauder acquires Tom Ford brand
The Estée Lauder Companies has signed an agreement to acquire the Tom Ford brand in a $2.8 billion deal.
The cosmetics giant said the purchase means it will secure long-term cash flow from owning the fast-growing Tom Ford Beauty brand beyond the existing license expiration in 2030. It will also benefit from new licensing revenue streams and the elimination of royalty payments on beauty.
The Tom Ford brand spans fashion, beauty, fragrances and accessories.
Under the agreement, Tom Ford, founder and chief executive of Tom Ford International, will stay on with the business as “creative visionary” until the end of 2023. Meanwhile, Domenico De Sole, chairman of Tom Ford International, will act as a consultant.
Fabrizio Freda, president and chief executive, 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.”
