A blockbuster deal to sell the eponymous fashion brand has catapulted fashion designer Tom Ford into the global club of billionaires.
Ford, 61, who launched the Tom Ford Brand in 2005 and turned it into a luxury apparel and accessories giant, sold his company to Estée Lauder Companies on Tuesday.
(HAND) In a $2.8 billion deal.
The acquisition of Tom Ford Brands by Estée Lauder is expected to be completed in the first half of next year, pending regulatory approvals. The deal will fully integrate Tom Ford Brands, which already has an ongoing partnership with the cosmetics and skincare giant, into Estée Lauder’s diverse portfolio.
The two companies have been partners for over 15 years, after they launched the Tom Ford Beauty brand together in 2006.
As a result of the sale, Ford now joins the list of global billionaires, according to this forbes, The designer, who owns approximately 64% of his company, is estimated to receive approximately $1.1 billion in cash from the sale, after deducting estimated taxes. Ford’s current portfolio also includes at least two homes, one in Los Angeles and one in New York, worth a total of $65 million, the publication said.
According to the statement, Ford will continue to be the “creative visionary” of the brand after the deal is closed and will hold this position until the end of 2023.
Domenico De Sole, president of the Ford brand, which previously managed Gucci, will continue his role as a consultant during the same period.
The companies said the deal, which will be accomplished through a combination of cash, debt and deferred payments due in 2025, will allow two of Tom Ford’s current partners, Ermenegildo Zegna and Marcolin, to extend their existing license agreements.
Luxury Italian fashion house Zegna said it will expand its current arrangement “to include a long-term license for all men’s and women’s fashion, as well as accessories and underwear.” Marcolin will continue to manufacture sunglasses and optical frames under the Ford brand.
Estée Lauder Companies, home to many global beauty brands such as Clinique and Bobbi Brown, aforementioned He said he expects annual sales of Tom Ford’s cosmetics to reach $1 billion “in the next few years.”
Fabrizio Freda, President and CEO of Estée Lauder Companies, said in a statement: “As an owned brand, this strategic acquisition will unlock new opportunities and strengthen our growth plans for Tom Ford Beauty.” said.
Born in Austin, Texas, in 1961, Ford studied art history at New York University and later architecture at the Parsons School of Design in New York and Paris. She moved to Milan in 1990, where she began her fashion career as a womenswear designer at Gucci. A few years later he became creative director and was responsible for all of Gucci’s product lines, from apparel to perfumes.
During his 10 years in this role, Gucci’s sales have grown from $230 million to over $3 billion. In 2005 Ford set out on his own and started his own company.
Ford said in a statement that “Estée Lauder Companies could not be happier with this acquisition as it is the ideal home for the brand.”
“They’ve been an outstanding partner from day one when I started the company, and I’m excited to see them grow into luxury stewards in the next chapter,” he said.
–CNN’s Parija Kavilanz contributed to this story.
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