In major news within both the beauty and fashion industries, cosmetics giant Estée Lauder has announced that it will acquire luxury label Tom Ford. After achieving success with the fashion house’s beauty arm, Tom Ford Beauty, the global beauty company will now buy the rights to the entire brand for approximately $2.8 billion, including its highly sought-after clothing and accessories empire.
“We are incredibly proud of the success TOM FORD BEAUTY has achieved in luxury fragrance and makeup and its dedication to creating desirable, high-quality products for discerning consumers around the world,” said Fabrizio Freda, President and Chief Executive Officer at The Estée Lauder Companies, in a statement published to Business Wire.
Freda revealed that under the new deal, Estée Lauder will look to expand the beauty offering of the Tom Ford brand even further. “As an owned brand, this strategic acquisition will unlock new opportunities and fortify our growth plans for TOM FORD BEAUTY,” he said.
“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.”
Designer and CEO Tom Ford, who founded his eponymous label back in 2005, will stay in his current role within the company until at least 2023. “I could not be happier with this acquisition as The Estée Lauder Companies is the ideal home for the brand,” he said.
“They have been an extraordinary partner from the first day of my creation of the company and I am thrilled to see them become the luxury stewards in this next chapter of the TOM FORD brand.”