The Estée Lauder Companies has signed an agreement to acquire the Tom Ford brand in a $2.8 billion deal.
The cosmetics giant said the purchase means it will secure long-term cash flow from owning the fast-growing Tom Ford Beauty brand beyond the existing license expiration in 2030. It will also benefit from new licensing revenue streams and the elimination of royalty payments on beauty.
The Tom Ford brand spans fashion, beauty, fragrances and accessories.
Under the agreement, Tom Ford, founder and chief executive of Tom Ford International, will stay on with the business as “creative visionary” until the end of 2023. Meanwhile, Domenico De Sole, chairman of Tom Ford International, will act as a consultant.
