Estée Lauder announced it agreed to buy the luxury brand Tom Ford in a deal that totalled $2.8 billion (≈AED 10.3 billion). The designer, film director, art collector and fashion world provocateur can now add billionaire to his list of accolades.
The Tom Ford - Estée Lauder deal is the largest in the luxury industry this year and is a testament to the enduring power of perfume. It comes as high-end brands are looking for new avenues for growth as business in China — once the engine for luxury beauty businesses — has become more challenging amid pandemic restrictions.
According to the cosmetic giants Estée Lauder, the acquisition would "unlock new opportunities". Ford said it was the ideal home for the brand.
In a joint statement with Estée Lauder, Tom Ford said, "I could not be happier with this acquisition". According to Ford, "Estée Lauder has 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."
Under the agreement, 61-year-old Tom Ford, founder and CEO of Tom Ford International, 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, will also stay as a consultant until that same time.
The Tom Ford brand was first launched in 2005. Tom Ford is the current head of the Council of Fashion Designers of America and previously served as creative director for fashion giants Gucci and Yves Saint Laurent in the 1990s and early 2000s.
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