Estee Lauder buys Tom Ford in a deal worth $2.8 billion

Luxury cosmetics company Estée Lauder acquires the designer Fashion house Tom Ford The company announced the deal worth $2.8 billion.

The deal will be Estée Lauder’s largest acquisition to date.

As part of the deal announced Tuesday, Ermenegildo Zegna Group and Marcolin SpA will enter long-term licensing agreements for Tom Ford Fashion and Tom Ford Eyewear, respectively.

Amazon’s new communications service takes care of common conditions

While Estée Lauder said the deal values ​​the total project at $2.8 billion, the New York-based beauty company is expected to pay close to $2.3 billion, following a $250 million payment from Italian eyewear manufacturer Marcolin SpA.

The purchase, subject to regulatory approvals, is scheduled to close in the first half of 2023.

Estee Lauder talks about buying luxury brand Tom Ford

In a statement shared with Estée Lauder, Tom Ford said, “I couldn’t be happier with this acquisition.”

He said Estée Lauder Companies I have been “an exceptional partner from day one of the company’s founding, and I am delighted to see them become the luxury agents of this next chapter of the Tom Ford brand.”

The companies announced that Tom Ford himself will remain in his current position as creative director until at least 2023. Domenico De Sole, President of Tom Ford International, will remain an advisor until the same time.

There is an Estée Lauder cosmetics counter in Los Angeles, California, United States (Reuters/Lucy Nicholson/Reuters)

See also  More than 1,000 flights have been canceled as a deadly ice storm sweeps the south

Since 2006, the American cosmetic company has licenses Tom Ford Perfumes and Cosmetics.

In Estée Lauder’s fiscal year that ended June 30, the brand’s net sales grew nearly 25% over the previous year. The beauty company said that in the next few years, it expects the beauty line to achieve net sales of $1 billion.

Estee Lauder said the acquisition “opens up new opportunities.”

“This strategic acquisition will open new opportunities and advance our growth plans for Tom Ford Beauty,” said Fabrizio Freda, President and CEO of Estée Lauder, in a statement. “It will also help drive our momentum in the promising category of luxury beauty in the long term, while reaffirming our commitment to being the leading net player in the world of prestige beauty.”

Click here to read more about FOX BUSINESS

Estée Lauder said it aims to fund the acquisition through a combination of cash, debt and $300 million in deferred payments For sellers who become due from July 2025.

The Associated Press contributed to this file.