New York [US], November 17 (ANI): Designer, film director, art collector, and maverick of the fashion world, Tom Ford can now add 'billionaire' to his list of accomplishments!According to New York Times, Estee Lauder has agreed to pay USD 2.8 billion to acquire Tom Ford's business.
The agreement, which is the largest in the luxury market this year, demonstrates the lasting strength of one of the bestselling perfumes in the fashion world!As per New York Times, Tom Ford will stay on with the brand till the end of 2023, although his role beyond that is not yet clear.
New York Times quoted Tom Ford's statement where he said that he "could not be happier."He heaped praises on Estee Lauder and 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."The success of Tom Ford's beauty division, which covers fragrance, cosmetics, and skin care and for which Estee Lauder has had a long-standing licencing deal, served as the impetus for the acquisition. The luxurious fragrances from Tom Ford, such as Black Orchid and Tuscan Leather, regularly top best-seller lists and sell for more than USD 100.
With a portfolio of brands that includes La Mer, Bobbi Brown, and Clinique, the Tom Ford deal also introduces clothes to Estee Lauder, a company which had previously been solely focused on the cosmetics industry.
According to New York Times, Fabrizio Freda, the chief executive officer of Estee Lauder said, "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."He added the deal would further his company's growth in "luxury beauty for the long term."The USD 2.3 billion payment from Estee Lauder will be financed by a combination of cash on hand, debt, and USD 300 million in deferred payments. When the purchase is finalised, Marcolin, an Italian company that holds the licence for Tom Ford eyewear, will pay Estee Lauder USD 250 million, as per New York Times. (ANI)