Estée Lauder nears Tom Ford acquisition, licencing deals

ESTÉE Lauder Cos is close to announcing a deal for US luxury brand Tom Ford, according to people familiar with the matter.

The transaction will include licencing agreements of Tom Ford’s eyewear and apparel businesses to other brands, said one of the people, who asked not to be identified discussing private information. A deal could value Tom Ford at about US$2.8 billion, another person said.

Representatives for Estee Lauder and Tom Ford didn’t immediately respond to requests for comment.

Tom Ford has a long history with licencing. Estée Lauder is a long-term licensee to the brand’s beauty and fragrance products.

All the company’s suits were licenced to and produced by Italian fashion house Ermenegildo Zegna Holditalia until the Fall and Winter 2022 collection, when the exclusive rights were to expire, according to Zegna’s annual report. Tom Ford’s eyewear is produced and distributed by Marcolin, an Italian manufacturer backed by private equity firm PAI Partners.

The deal would be the largest ever for Estée Lauder, a cosmetics giant whose brands include MAC lipstick and Clinique moisturisers. The Financial Times reported earlier that Estée Lauder was nearing a deal with Tom Ford.

SEE ALSO

Luxury brand Tom Ford hires Goldman Sachs to explore potential sale: sources

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Estee Lauder fell 3.3 per cent to close at US$220.67 in New York trading on Monday (Nov 14), giving the company a market value of about US$79 billion.

Tom Ford, a 61-year-old Austin, Texas, native, started his namesake company in 2005, a year after leaving Gucci, which he revitalised during a decade-long stint as creative director. He also was creative director for the house of Yves Saint Laurent following Gucci’s acquisition in 1999. BLOOMBERG