New York, US: Luxury cosmetics firm Estee Lauder will buy designer fashion house Tom Ford in a deal worth $2.8 billion. The deal is going to be Estee Lauder’s biggest acquisition to date.
The company declared that the acquisition would unlock new opportunities. The driving force for the takeover was the strength of Tom Ford’s beauty business, which covers fragrance, cosmetics, and skin care and for which Estée Lauder has a long-standing licensing deal.
Mr. Tom Ford stated that Estee Lauder is the ideal home for his brand.
“I could not be happier with this acquisition”, Mr. Tom Ford added in a joint statement with Estee Lauder.
According to the statement of Estee Lauder Companies, Mr. Domenico De Sole, Chairman of Tom Ford International, will remain at the company as a consultant until Mr. Ford leaves at the end of 2023.
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.
Mr. Fabrizio Freda, head of Estee Lauder Companies, mentioned in the statement.
“Estee Lauder companies had 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”, Mr. Tom Ford declared in his statement.
Mr. Ford, who first launched his brand in 2005, is currently the head of the Council of Fashion Designers of America. The renowned designer has previously worked as creative director at Gucci and Yves Saint Laurent in the 1990s and early 2000s.