When the Wall Street Journal reported the initial talks, the sale was estimated to reach $3 billion or more.
It’s been three months since Estee Lauder Companies’ (ELC) negotiations to acquire Tom Ford were publicized. Now, the deal has been solidified with a contract valued at only $2.8 billion. When the Wall Street Journal reported the initial talks, the sale was estimated to reach $3 billion or more.
Ford will stay with his namesake label until the end of 2023, while Tom Ford chairman Domenico De Sole will remain a consultant, per Vogue Business.
“Estée Lauder Companies is the ideal home for the brand,” Ford said in a statement. “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.”
ELC has already owned the license to Tom Ford beauty since its launch in 2006. Its other makeup, skincare, and perfume brands include La Mer, Mac, Clinique, and Estee Lauder.
Banner image from @TomFord on Instagram.