Inside Estée Lauder’s US$2.8 billion acquisition of Tom Ford: the beauty giant’s biggest-ever deal would be a historic moment for the former Gucci and YSL designer, joining MAC and Clinique
The transaction will include licensing agreements of Tom Ford’s eyewear and apparel businesses to other brands, said one of the people, who asked not to be identified discussing private information. A deal could value Tom Ford at about US$2.8 billion, another person said.
Tom Ford has a long history with licensing. Estée Lauder is a long-term licensee to the brand’s beauty and fragrance products.
All the company’s suits were licensed to and produced by Italian fashion house Ermenegildo Zegna Holditalia SpA until the autumn and winter 2022 collection, when the exclusive rights were to expire, according to Zegna’s annual report. Tom Ford’s eyewear is produced and distributed by Marcolin SpA, an Italian manufacturer backed by private equity firm PAI Partners.
The deal would be the largest-ever for Estée Lauder, a cosmetics giant whose brands include MAC lipstick and Clinique moisturisers. The Financial Times reported earlier that Estée Lauder was nearing a deal with Tom Ford.
Estée Lauder fell 3.3 per cent to close at US$220.67 in New York trading on November 14, giving the company a market value of about US$79 billion.
- Estée Lauder’s to-be-announced acquisition of Tom Ford would include licensing agreements of the brand’s eyewear and apparel business, said an inside source
- The company’s suits were licensed by Ermenegildo Zegna Holditalia SpA until autumn/winter 2022, while its eyewear is produced and distributed by Italian label Marcolin SpA