Tom Ford became a billionaire after Estée Lauder agreed to buy his company for $2.8 billion
Estée Lauder has agreed to buy Tom Ford’s high-end fragrances, making designer, director, art collector and fashion provocateur Tom Ford now officially a billionaire.
On Tuesday, November 15, Estée Lauder announced that it had agreed to buy her company in a deal worth $2.8 billion – the largest in the luxury industry this year.
Ford, 61, will remain with the brand until the end of 2023, although its role beyond that is still unclear.
Saying he “couldn’t be happier,” Mr. Ford added of Estée Lauder in a statement, “They’ve been an amazing partner since day one of my founding the business and I’m thrilled to see them become the stewards of luxury in this next chapter of the Tom Ford brand.
Tom Ford’s beauty business includes fragrances, cosmetics and skincare. Prior to this deal, Estée Lauder had a long-standing licensing agreement with Tom Ford.
The deal also brings clothing to Estée Lauder, which was strictly beauty-focused, with a portfolio of brands including La Mer, Bobbi Brown and Clinique.
“We are incredibly proud of Tom Ford Beauty’s success in luxury fragrance and makeup and its commitment to creating desirable, high-quality products for discerning consumers around the world,” said Fabrizio Freda, CEO of Estée Lauder. He added that the deal would help his business grow in “long-term luxury beauty.”
Estée Lauder, who will pay $2.3 billion, will finance the deal through a combination of cash, debt and $300 million in deferred payments. Marcolin, the Italian group that owns the license for Tom Ford eyewear, will pay Estée Lauder $250 million upon closing of the deal.