All Tom Ford intellectual property will now be in the hands of the Estée Lauder Companies, Inc. as the beauty giant acquires the brand outright from Tom Ford International, with the deal planned to close next year.
As a result of the acquisition, Ermenegildo Zegna and Marcolin have inked long-term licences for Tom Ford fashion and Tom Ford eyewear. Zegna will acquire necessary operations of the Tom Ford fashion business to continue with its licensing obligations.
The deal values Tom Ford at US$2·8 milliard, with Estée Lauder Companies paying US$2·3 milliard, with Marcolin paying US$250 million at closing. Estée Lauder Companies will fund the acquisition through cash, debt, and US$300 million in deferred payments to Tom Ford International due July 2025.
Without the acquisition, Estée Lauder’s licence for Tom Ford Beauty would have expired in 2030. Instead, it saves on royalty payments and brings potential licensing revenue from new ventures to Estée Lauder.
Founder and CEO of Tom Ford International, Tom Ford, remains as the brand’s visionary to the end of 2023, while Domenico de Sole, chairman of Tom Ford International, remains as a consultant till that time.
‘As an owned brand, this strategic acquisition will unlock new opportunities and fortify our growth plans for Tom Ford Beauty,’ said Fabrizio Freda, president and CEO of the Estée Lauder Companies. ‘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.’
Edited November 18, 0528 UTC to clarify deal has not closed, as noted below.