Estée Lauder Companies (ELC) will reportedly acquire Tom Ford today.
Sources close to the beauty goliath said that ELC has agreed to acquire the luxury fashion brand for approximately US$2.8bn, claim BoF.
The transaction will also include the licensing agreements for Tom Ford’s eyewear and apparel businesses.
Although ELC will be the main buyer, multiple partners are rumoured to be involved with the business deal.
The move marks ELC’s first foray into the fashion industry.
Tom Ford was placed on the market in 2022, with investment banking company Goldman Sachs being brought on at the time to handle the sale of the company.
ELC has been in direct competition with rival luxury goods firm Kering, which briefly became the frontrunner to acquire the business last month.
ELC and the fashion house originally collaborated together to create Tom Ford’s first signature scent in 2006 with Black Orchid.
A skin care and make-up line was then released in 2011 into Harrods and Selridges, featuring glosses, mascara and a ten-shade blush kit.
The brand then expanded further into the premium skin care category with the launch of the Tom Ford Research in 2019.
ELC's goal of purchasing Tom Ford has also not been deterred by its poor start to the 2023 financial year.
Covid restrictions in China, which “presented a greater challenge” than it had originally anticipated, led to an 11% slump in Q1 sales.
Net earnings were “unfavourably” impacted by a stronger US dollar in relation to other currencies, and declined to US$489m, down from $692m from 2021.
Cosmetics Business has reached out to ELC for comment.