The Beauty Conglomerate Purchased the Fashion House in a $2.8 Billion Deal
Estée Lauder has announced its purchase of Tom Ford in a $2.8 billion deal. Marking its first push into luxury fashion, the beauty conglomerate also announced the expansion of Tom Ford’s existing licensing partnerships with Zegna.
Under the agreement, Ford will continue to serve as the brand’s creative visionary after closing and through the end of calendar 2023. Domenico De Sole, Chairman of Tom Ford International and the longtime business partner with whom Ford founded the brand, will stay on as a consultant until that same time.
While the designer is known for his suiting and nocturnally glamorous women’s ready-to-wear, its fragrance and cosmetics section – which was launched by Estée Lauder in 2005 – makes up a larger part of the brand’s sales.
Kering – the fashion conglomerate that owns Gucci, at which Ford had an iconic run during the 90s in which he revitalized the house – has also reportedly been in talks about buying Tom Ford. Estée Lauder’s move thus comes as a way to prevent the loss of makeup, skincare, and fragrance assets under the Tom Ford name, while making a bigger profit from them and moving into the highly profitable – though highly competitive – luxury fashion sphere.
Ermenegildo Zegna Group, which has built a robust menswear business through its namesake line as well as through its acquisition of American label Thom Browne, has held the license to Tom Ford men’s apparel and footwear for the past 16 years. Eyewear group Marcolin has produced and distributed Tom Ford optical frames and sunglasses since 2005. Estée Lauder’s announcement confirmed that these licensing partnerships will remain in place moving forward, while the partnership with Zegna will be expanded across womenswear and accessories as well.
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. 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.
– Tom Ford
“We are incredibly proud of the success Tom Ford Beauty has achieved in luxury fragrance and makeup. As an owned brand, this strategic acquisition will unlock new opportunities and fortify our growth plans for Tom Ford Beauty. 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.”
– Fabrizio Freda, President and Chief Executive Officer, The Estée Lauder Companies
