Estee Lauder has obtained luxurious vogue label Tom Ford for US$2.8 billion, marking Estee Lauder’s most significant acquisition yet.
The moment the deal is concluded up coming year, Estee Lauder will grow to be the sole operator of the Tom Ford model and all of its intellectual home. The business expects to fund this transaction by a combination of dollars, credit card debt and $300 million in deferred payments to the sellers that grow to be thanks starting July 2025.
“As an owned model, this strategic acquisition will unlock new prospects and fortify our advancement options for Tom Ford Attractiveness,” reported Fabrizio Freda, president and CEO at Estee Lauder.
“It will also even more help to propel our momentum in the promising group of luxury natural beauty for the lengthier expression, although reaffirming our motivation to staying the primary pure participant in global prestige natural beauty.”
Below the agreement, Tom Ford, founder and CEO of Tom Ford International, will keep on to serve as the brand’s resourceful visionary following closing and by way of the end of subsequent 12 months. Domenico De Sole, chairman of Tom Ford International, will continue to be on as a advisor until eventually that time.
The operator of the Zegna and Thom Browne manufacturer, Ermenegildo Zegna Group has also signed an settlement to enter a extensive-phrase license for Tom Ford style with Estee Lauder. As element of this transaction, Zegna will get functions of the Tom Ford manner enterprise necessary to carry out its obligations as a licensee. The brand’s present-day license with Marcolin will also be considerably prolonged.