Estée Lauder to Buy Tom Ford For US$2.8 Billion
Beauty giant Estée Lauder Cos Inc. has purchased luxury American fashion, cosmetics and fragrance brand Tom Ford. The deal sees Tom Ford himself remaining as the brand’s creative director until the end of 2023, when the newly-minted billionaire plans to move on. Already responsible for the license for Tom Ford Beauty, overseeing the distribution and management of the designer’s luxury fragrances and makeup – a profitable collection which saw an almost 25 percent net sales growth in a combined Q1 and Q2 this year. The deal ensures that Estée Lauder will completely acquire the well-performing Tom Ford Beauty, as well as add a fully-fledged fashion house to its portfolio for the first time, a move that experts say mimics similar moves made by other major luxury groups.
Gigi Hadid for Tom Ford SS19
First prominent as the boundary-pushing creative director for Gucci, then Yves Saint Laurent, Ford opened his eponymous fashion house in 2005. Tom Ford Beauty first launched in 2008 with the iconic Black Orchid EDP, a spicy floral created by David Appel and Pierre Negrin. Released the following year, the brand’s Private Blend collection cemented Tom Ford Beauty as a chic and sexy companion to Ford’s sultry fashion aesthetic. Color cosmetics followed in 2011, with a skincare line named Tom Ford Research launching in 2019.
While Tom Ford Beauty is predicted to continue its upwards success, Estée Lauder has seen multiple beauty brands in its stable close recently. Female-founded brands Rodin Olio Russo and Becca Cosmetics both shuttered in the last two years. Its designer fragrances division which holds the licenses for Donna Karan, DKNY, Michael Kors, and Tommy Hilfiger will be closed in June 2023, leaving the brands to seek new agreements elsewhere.