The US cosmetics group The Estée Lauder Companies Inc. has won the takeover gamble for the fashion house Tom Ford. On Tuesday evening, the company announced that it had entered into an agreement to purchase the brand. According to reports, the French luxury goods supplier Kering SA had recently expressed an interest in the fashion company.
Estée Lauder estimated the purchase price for the complete acquisition of Tom Ford, including all intellectual property rights, at approximately US$2.3 billion (€2.2 billion) less a payment of US$250 million made by Italian eyewear manufacturer Marcolin SpA after the closing of the takeover. The responsible competition authorities still have to agree beforehand, and the group currently expects the transaction to be completed in the first half of next year.
The license partnerships with Marcolin and Ermenegildo Zegna are to be expanded
The designated new owner, who has held Tom Ford’s cosmetics license since 2006, also announced the initial course setting for the period after the planned takeover. Accordingly, founder and CEO Tom Ford will remain with the brand as a “creative visionary” until the end of 2023. Domenico De Sole, the chairman of Tom Ford International, is also scheduled to play an advisory role.
Estée Lauder also relies on continuity when it comes to the most important licenses. The long-standing partnership between Tom Ford and the Italian clothing company Ermenegildo Zegna NV will be “extended and expanded”, the group announced. Zegna received the long-term license for the brand’s women’s and men’s fashion as well as accessories and underwear. The company will also take over operational parts of Tom Ford’s fashion division that are “necessary to fulfill the duties as a licensee”. In the future, Estée Lauder and Zegna want to “work closely together” on the creative direction of the label. In addition, the existing eyewear license partnership between Tom Ford and Marcolin will be “significantly extended,” according to a statement.
Founder Tom Ford: “I couldn’t be happier”
For Estée Lauder, the strategic focus is on the further expansion of the Tom Ford Beauty division. Fabrizio Freda, the group’s President and CEO, said in a statement that he was “incredibly proud” of the successes the cosmetics label has achieved in recent years. “The strategic acquisition of the brand will open up new opportunities and strengthen our growth plans for Tom Ford Beauty,” he said.
Designer Tom Ford was extremely satisfied with the future solution for his label, which he launched in 2005: “I couldn’t be happier about this transaction because Estée Lauder is the ideal home for the brand,” he said in a statement. “They have been an outstanding partner from day one when I created the company and I am thrilled that they will lead the label in its next chapter in luxury.”