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Estée Lauder Companies Inc. is set to announce the acquisition of the Tom Ford brand in a deal valued at $2.8 billion. Fashion business reports. The official statement should come already on Tuesday.
This would be Estée Lauder’s biggest acquisition to date and notably its first fashion brand. The company already owns Tom Ford Beauty, which he helped launch back in 2005, when the designer struck out on his own and founded his namesake company with Domenico De Sole. Ford expanded into the ready-to-wear market in 2010. With the latest acquisition, it also gains control of the brand’s apparel business, a first for a cosmetics company.
In the beginning of July, Bloomberg reported that the Tom Ford brand had called on Goldman Sachs to advise on a potential sale that could be worth “multi-billion dollars” and would potentially include an option that would give any new owner of Tom Ford the right to work with its founder after the sale.”
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In August, The Estée Lauder Companies emerged as a potential buyer The Wall Street Journal reported, where Dana Cimilluca, Cara Lombardo and Ben Dummett wrote: “Estée Lauder is particularly interested in the beauty business, with which it already has a long-term licensing agreement, and could potentially license the clothing line elsewhere,” people familiar with the matter said.
By November, Kering, i.e. Ford’s former employer, entered the competition Magazine. But on the weekend, Financial Times announced that Estée Lauder beat out other interested parties and was preparing to share news of the deal, which also includes Tom Ford’s debt.
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