Estée Lauder have acquired the house of Tom Ford in a deal reportedly worth $2.3 billion, marking the cosmetics giant's first foray into the world of fashion.
Tom Ford began working with Estée Lauder in 2005, after being at Gucci for 15 years. Initially with collaborations updating classic scents such as Youth Dew and Azurée, before creating a Tom Ford fragrance line, which began with Black Orchid in 2006, and continued with the Private Blend collection in March 2007.
Lauder will license out the fashion side of the business to Zegna and Marcolin. Tom Ford and Domenico De Sole, chairman of Tom Ford International, are expected to stay on as consultants until the end of 2023.
Lauder fought off competition from Gucci's parent company, Kering.
Fabrizio Freda, president and CEO of Lauder said "We are incredibly proud of the success Tom Ford Beauty has achieved in luxury fragrance and makeup and its dedication to creating desirable, high-quality products for discerning consumers around the world. As an owned brand, this strategic acquisition will unlock new opportunities and fortify our growth plans for Tom Ford Beauty. It will also further help to propel our momentum in the promising category of luxury beauty for the long term, while reaffirming our commitment to being the leading pure player in global prestige beauty.”
Tom Ford said, “I could not be happier with this acquisition as the Estée Lauder Companies is the ideal home for the brand. They have been an extraordinary partner from the first day of my creation of the company and I am thrilled to see them become the luxury stewards in this next chapter of the Tom Ford brand. Ermenegildo Zegna and Marcolin have been spectacular long-standing partners as well and I am happy to see the preservation of the great relationship that we have built over the past 16 years. With their full commitment, I trust they will continue the brand’s future as a luxury company that strives to produce only the highest-quality fashion and eyewear.”
Tom Ford began working with Estée Lauder in 2005, after being at Gucci for 15 years. Initially with collaborations updating classic scents such as Youth Dew and Azurée, before creating a Tom Ford fragrance line, which began with Black Orchid in 2006, and continued with the Private Blend collection in March 2007.
Lauder will license out the fashion side of the business to Zegna and Marcolin. Tom Ford and Domenico De Sole, chairman of Tom Ford International, are expected to stay on as consultants until the end of 2023.
Lauder fought off competition from Gucci's parent company, Kering.
Fabrizio Freda, president and CEO of Lauder said "We are incredibly proud of the success Tom Ford Beauty has achieved in luxury fragrance and makeup and its dedication to creating desirable, high-quality products for discerning consumers around the world. As an owned brand, this strategic acquisition will unlock new opportunities and fortify our growth plans for Tom Ford Beauty. It will also further help to propel our momentum in the promising category of luxury beauty for the long term, while reaffirming our commitment to being the leading pure player in global prestige beauty.”
Tom Ford said, “I could not be happier with this acquisition as the Estée Lauder Companies is the ideal home for the brand. They have been an extraordinary partner from the first day of my creation of the company and I am thrilled to see them become the luxury stewards in this next chapter of the Tom Ford brand. Ermenegildo Zegna and Marcolin have been spectacular long-standing partners as well and I am happy to see the preservation of the great relationship that we have built over the past 16 years. With their full commitment, I trust they will continue the brand’s future as a luxury company that strives to produce only the highest-quality fashion and eyewear.”
