Hobby Lobby founder and CEO David Greene on Monday explained his decision to give up ownership of his company by joining ‘Varney & Co.’ and, instead, “choose God.”
Luxury cosmetics firm Estee Lauder is acquiring designer fashion house Tom Ford in a deal worth $2.8 billion, the company has announced.
The deal would be Estee Lauder’s largest acquisition to date.
As part of the deal announced Tuesday, Ermenegildo Zegna Group and Marcolin SpA will enter into long-term license agreements for Tom Ford Fashion and Tom Ford Eyewear, respectively.
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FILE PHOTO: Designer Tom Ford arrives at the In America: An Anthology of Fashion Themed Met Gala at The Metropolitan Museum of Art in New York City, New York, US, May 2, 2022. REUTERS/Andrew Kelly (Reuters/Andrew Kelly/Reuters Photos)
While Estee Lauder said the deal values the total venture at $2.8 billion, the New York-based beauty company is expected to pay around $2.3 billion from Italian eyewear maker Marcolin SpA after paying $250 million.
The purchase, subject to regulatory approval, is expected to close in the first half of 2023.
Estee Lauder in talks to buy luxury brand Tom Ford
In a joint statement with Estee Lauder, Tom Ford said, “I couldn’t be more pleased with this acquisition”.
He added that Estée Lauder Companies “has been an exceptional partner since day one of the company’s creation, and I am thrilled to have him as the luxury steward in this next chapter of the Tom Ford brand.”
Tom Ford himself will stay on in his current position as creative director until at least 2023, the companies announced. Domenico De Sole, president of Tom Ford International, will remain as an advisor until the same time.
An Estee Lauder cosmetics counter is seen in Los Angeles, California, US (Reuters/Lucy Nicholson/Reuters)
Since 2006, the US beauty firm has licensed Tom Ford fragrances and cosmetics.
In Estee Lauder’s fiscal year that ended June 30, the brand’s net sales grew nearly 25% from the previous year. The beauty company said it expects to generate $1 billion in net sales from the beauty line over the next few years.
Estée Lauder said the acquisition would “unlock new opportunities”.
“This strategic acquisition will unlock new opportunities and strengthen our growth plans for Tom Ford Beauty,” Fabrizio Freda, President and CEO of Estée Lauder, said in a statement. “It will also help us further our momentum in the promising category of luxury beauty for the long term, reaffirming our commitment to being the leading pure player in global prestige beauty.”
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Estee Lauder said it aims to finance the acquisition through a combination of cash, debt and deferred payments of up to $300 million to the sellers, beginning in July 2025.
The Associate Press contributed to this file.
