November 16, 2022 |
Estée Lauder Cos. just acquired Tom Ford for $2.8 billion in its biggest luxury procurement to date. The US cosmetics conglomerate has prevailed over Kering SA – whose brands include Gucci (Ford’s former employer), Saint Laurent and Balenciaga – which was poised to win the auction earlier this month according to a Wall Street Journal report.
This pandering builds upon a longstanding working relationship and licensing agreement between the two industry powerhouses. Estée Lauder first tapped Ford in 2005, naming the American maison as its official beauty partner. Now, by owning Tom Ford, greater profits for the cosmetics group will be extensive as Tom Ford sits on prestigious makeup and fragrance categories already, growing 18 percent and 13 percent respectively during the second quarter of 2022. Plus, it won’t have to make royalty payments on Ford’s beauty arm once the deal goes through. The beauty firm however, is expected to employ additional partners to assist with the fashion and accessories side of the Tom Ford label.
Despite this newfound venture, Mr. Tom Ford himself is expected to carry on serving his eponymous brand’s sophisticated, high-octane vision straight through the end of 2023. With this move, Tom Ford is for the future and Estée Lauder is making a much bigger luxury footprint than ever before.
Photography by Jeff Burton.
