Tom Ford

History

2022: Estee Lauder acquires Tom Ford brand for $2.8 billion

On November 15, 2022, the American cosmetics and perfume manufacturer Estee Lauder Companies announced the signing of an agreement to acquire the luxury brand Tom Ford. The transaction amount will be $2.8 billion.

Estee Lauder Companies, headquartered in New York City, was founded in 1946. The company owns many brands, in particular, Aveda, Bobbi Brown, Clinique, Kiton, Origins, Smashbox, etc. The range of products includes all kinds of cosmetics, perfumes and hair care products.

Cosmetics and perfumery manufacturer Estee Lauder bought luxury brand Tom Ford for $2.8 billion

The Tom Ford brand was founded by American designer and fashion designer Thomas Carlyle Ford in 2005. Clothing, shoes, accessories and bags are sold under this brand. Tom Ford and Estée Lauder Companies are already collaborating on the Tom Ford Beauty series of cosmetics and perfumes.

Under the terms of the signed agreement, Estee Lauder Companies will pay $2.3 billion in cash for the acquired brand. The remainder will be Tom Ford's debt and deferred payments between now and 2025. Under the treaty, Tom Ford, founder and CEO of Tom Ford International, will serve as the company's "creative strategist" until the end of the calendar year 2023. The chairman of the board of directors of Tom Ford, Domenico De Sole, will remain a brand consultant until the same date.

The process of conducting the transaction depends on a number of conditions, including obtaining the necessary approvals from regulatory authorities. The takeover of the brand is planned to be completed in the first half of 2023. The merger is expected to dilute adjusted earnings per share (EPS) for fiscal 2023 by $0.05 - to $0.15, largely due to one-off acquisition-related costs.^[1]

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