Estée Lauder announced Tuesday that it has entered into a deal to acquire fashion brand Tom Ford for $2.8 billion.
The deal will help Estée strengthen its luxury offering even as demand for high-end apparel and accessories remains resilient. Record inflation in the US.
Founded in 2005 by fashion designer Tom Ford, the luxury brand is known for its menswear, but also has women’s apparel, handbags, cosmetics and perfumes as part of its product line.
The deal is the latest in a series of acquisitions by Estée Lauder, including taking full control of the owner of the Ordinary skincare brand. Deciem at about $1 billion last year.
At the close of trading on Tuesday, Estée shares were down 17% since a deal with Tom Ford was reported by The Wall Street Journal. first time in august.
Tom Ford entered exclusive talks with Estée Lauder last week, beating out competing bids from companies including Gucci owner Kering, the Financial Times reported Friday.
Shares of Estée Lauder, which already licenses Tom Ford fragrances and cosmetics, fell slightly in extended trading.
Estée will fund the transaction through a combination of cash, debt and a $300 million deferred payment to the seller due in July 2025, the company said.
https://nypost.com/2022/11/15/estee-lauder-acquiring-fashion-label-tom-ford-for-2-8b/ Estée Lauder buys fashion brand Tom Ford for $2.8 billion