Estee Lauder is in talks to buy Tom Ford in a deal worth more than $3 billion, the Wall Street Journal reports

To receive the newsletter from Vogue Business, Register here.

The Estée Lauder Companies are in talks to buy Tom Ford in a deal that values ​​the fashion brand at at least $3 billion, according to The Wall Street Journalwho cited unnamed sources.

The newspaper reported that Estée Lauder is “particularly interested” in the cosmetology department, for which she has already obtained a license. Bloomberg It reported last month that the brand had hired Goldman Sachs for a potential sale. Other suitors are interested in buying a fashion brand, The Wall Street Journal He said. Neither Tom Ford nor Estee Lauder could immediately be reached for comment Vogue Business.

The Texas-born designer, best known for his work at Gucci and Yves Saint Laurent, created his brand in 2004, focusing on cosmetics and perfumes, high-margin profit drivers for several luxury brands, and later adding menswear and womenswear. The Tom Ford Black Orchid fragrance was launched in 2006 and the Genderless line was launched in 2007, with the launch of the Tom Ford Beauty collection in 2011.

Estée Lauder, who also owns Clinique, Jo Malone and Aveda, said Tom Ford Beauty sales rose by double digits in the last third quarter, buoyed by the launch of new fragrances including Rose D’Amalfi and “hero franchises” like Oud Wood and ombre leather. Prestige Skincare is Estée Lauder’s fastest growing division; But Tom Ford Beauty is very much a luxury perfume brand. However, they also include color cosmetics, men’s grooming and skin care products, and fall within Estée Lauder’s “luxury brands” along with Le Labo and La Mer. Beauty giant bought Korean skincare brand Dr Jart in 2019; And in 2021, it acquired a majority stake in Canadian beauty brand Deciem in a tiered buyout for $1 billion. The potential purchase of Tom Ford would be the largest acquisition yet.

The Tom Ford brand, which is privately owned, does not release sales performance.

In January of this year, Tom Ford canceled his fall show, which was originally scheduled to conclude New York Fashion Week, citing problems caused by the Omicron variant at his Los Angeles workshop and factories in Italy. Then in May, he resigned as president of the Council of Fashion Designers of America. New York Fashion Week is scheduled to conclude on September 14.

Comments, questions or feedback? Contact us at [email protected].

More on this topic:

Tom Ford is up for sale Bloomberg Says

Tom Ford is stepping down as CFDA Chairman

Under the leadership of Tom Ford, New York Fashion Week is undergoing an evolution

Leave a Reply

%d bloggers like this: