The Estee Lauder Companies (ELC) said it agreed to buy fashion house Tom Ford in a deal worth US$2.8bn, becoming the luxury cosmetic group’s largest acquisition to date.
As part of the deal, ELC will become the sole owner of the Tom Ford brand and its intellectual property.
ELC said in a statement that its purchase of Tom Ford, created by the Texan designer with the same name, will “allow for continuity and the further evolution of the Tom Ford brand as one of the preeminent global luxury brands.”
The deal is expected to be funded through a combination of cash, debt, and US$300mln in deferred payments due in July 2025.
Tom Ford, founder and CEO of the brand, will continue to serve as its creative visionary until the end of next year.
“ELC and TOM FORD share a deep appreciation for luxury, creativity, entrepreneurial spirit, and a commitment to excellence, and above all, the extraordinary talent that fuels our businesses,” said William P. Lauder, executive chairman of ELC.