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Monday / July 15.
HomeminewsEstée Lauder, Tom Ford Deal

Estée Lauder, Tom Ford Deal

The Estée Lauder Companies (ELC) has acquired its former licensor Tom Ford for US$2.8bn, the beauty brand owner’s biggest deal to date.

The headline-making transaction also has taken the title of the biggest deal of the year in the luxury segment.

Ford owned an estimated 64% of the business and is expected to receive $1.1bn from the deal

The purchase includes Tom Ford’s eyewear business.

Ford, the namesake founder, will step down as CEO and creative lead at the end of 2023.

Domenico De Sole, Chairman of Tom Ford and the designer’s long-term business partner, will stay with the brand until Ford’s departure.

ELC, the maker of MAC and Clinique, has licensed Tom Ford’s make-up, fragrances, and skin care lines since 2006.

“I could not be happier with this acquisition as The Estée Lauder Companies is the ideal home for the brand,” said Ford.

“They have 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.”

Ford owned an estimated 64% of the business and is expected to receive $1.1bn from the deal.

Long-standing eyewear licensee Marcolin will remain as Tom Ford’s glasses manufacturer.

ELC fought off competition from Alexander McQueen owner Kering to clinch the deal.