Estée Lauder is set to buy Tom Ford in a US $ 2.8 billion deal, beating out a French luxury conglomerate that was rumoured to be in the running for the US fashion label.
Commenting on the acquisition of Tom Ford by ELC, Domenico De Sole, Co-founder and Chairman of Tom Ford International said: “I view The Estée Lauder Companies, the first partner in our Tom Ford journey, as the trusted party to continue the extraordinary legacy of the brand.”
Estee Lauder would also acquire the brand’s apparel business as part of the deal. The brand’s ready-to-wear will be produced under license by Ermenegildo Zegna Group, which also owns Thom Browne.
Zegna will acquire operations of the Tom Ford fashion business ‘necessary to perform its obligations as licensee’ for its men’s and women’s fashion, accessories, and underwear. Estée Lauder said it would ‘align closely’ with Zegna on the creative direction of Tom Ford. The brand’s current license with eyewear manufacturer Marcolin will also be ‘substantially extended’.
Tom Ford will continue to serve as the brand’s ‘creative visionary’ until the end of 2023, while Chairman Domenico De Sole will stay on as a consultant during that period.
A partnership between the two brands would highlight the resilience of the luxury fashion and cosmetics market in the face of rising inflation and supply chain disruptions.
For New York-based Estée Lauder, the acquisition of Tom Ford would be its biggest and latest in a series of transactions, post full control of Canadian beauty group Deciem in 2021.
“Estée Lauder Companies is the ideal home for the brand. 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,” said Ford in a statement.
