Although already owns and helped found the Tom Ford beauty brand, Estee lauder is set to acquire its biggest acquisition to date and its first fashion brand. The beauty giant is getting ready to announce its acquisition of the fashion brand Tom Ford in a deal valued at $2.8 billion.
Tom Ford SA is a luxury fashion house founded by designer Tom Ford in 2005. Its product line features ready-to-wear and made-to-measure offerings, as well as footwear, accessories, and handbags, the brand also houses beauty products that range from fragrance, makeup, candles, e.t.c.
Estee lauder already owns Tom Ford beauty, which it helped launch in 2005 when Tom Ford became an independent designer. The Tom Ford brand became viral when it expanded its eponymous brand to ready-to-wear in 2010.
Estee Lauder will take control of Tom Ford’s apparel business, and according to Bloomberg, Tom Ford had approached Goldman Sachs for financial advice and to help strike a deal valued at a few billion dollars and to “include an option that would give any new owner of Tom Ford the right to work with its founder after the sale.”
Amongst those interested in this deal were Estee Lauder, and Kering but according to Financial Times, Estee Lauder beat out other bidders and it’s ready to take the Tom Ford business and its debts as its own.
Estee Lauder released a statement :
“Under the stewardship of ELC, the purchase of the Tom Ford brand and the extension of its current licensing partners will allow for continuity and the further evolution of the Tom Ford brand as one of the preeminent global luxury brands of the twenty-first century,”
Tom Ford also said in a statement:
“I could not be happier with this acquisition, as The 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 of the Tom Ford brand.”