Estee Lauder, the luxury cosmetics firm, will acquire the designer fashion brand Tom Ford for $2.8 billion, making it the biggest-ever acquisition. The company announced the deal on Tuesday.
Details of the Deal
Marcolin S.p.A, the Italian eyewear manufacturer, and Ermenegildo Zegna Group are about to enter license agreements for the fashion house and its eyewear section, respectively, on a long-term basis. Marcolin S.p.A will pay $250 billion for the deal, and the beauty company will likely pay $2.3 billion.
The purchase is yet to get regulatory approvals which may take it to the first half of 2023.
Tom Ford is Quite Satisfied
Tom Ford said that he was pleased with the deal. Estee Lauder has been excellent in partnership, added the fashion designer as he sighted a bright future for the brand he created under the New York-based company’s banner.
Tom Ford, the creative director of the fashion house, and Domenico De Sole, the chairperson, will remain in their respective positions until the end of 2023.
Buying the Tom Ford Brand is Part of the Growth Plans of Estee Lauder
The US beauty firm is experiencing higher sales these days, and its net sales grew by 25% more than the previous year. The company expects the upcoming years to see net sales of up to $1 billion. According to Estee Lauder, this acquisition is a part of the omnipresence and unlocking new opportunities.
Estee lauder president and CEO Fabrizio Freda stated that this deal would fortify the company’s growth plans and propel its momentum to remain a promising and pure player in the beauty world.
