Following weeks of public speculation regarding the acquisition, The Estée Lauder Companies (ELC) will acquire TOM FORD in a deal valued at $2.8 billion. The transaction is expected to close during the first half of 2023.
Existing TOM FORD partners Ermenegildo Zegna Group, which produces the brand’s fashion, and Marcolin S.p.A, which manages its eyewear, will enter long-term license agreements with ELC. Zegna also will hold the license for TOM FORD accessories and underwear.
ELC will pay $2.3 billion with a combination of cash and debt, and $300 million in deferred payments due by July 2025. Marcolin will pay $250 million to ELC when the deal closes. ELC had entered into a licensing deal to produce the luxury brand’s beauty products in 2006 with luxury fragrance, skincare and makeup categories.
“As an owned brand, this strategic acquisition will unlock new opportunities and fortify our growth plans for TOM FORD BEAUTY,” said Fabrizio Freda, President and CEO of ELC in a statement. “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.”
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Tom Ford International Founder and CEO Tom Ford will serve as the brand’s creative lead through 2023. Domenico De Sole, Chairman of the company, also will remain with the company throughout 2023 as a consultant.
Ford launched his eponymous brand in April 2005 following a 14-year career at Gucci that included serving as the Gucci Group Creative Director and Vice Chairman of the Management Board. The designer was credited with reviving the luxury fashion house during his tenure as Creative Director.
“[The Estée Lauder Companies] 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,” said Ford in a statement. “Ermenegildo Zegna and Marcolin have been spectacular long-standing partners as well and I am happy to see the preservation of the great relationship that we have built over the past 16 years.”
