Estee Lauder buys Tom Ford for R48 billion

Luxurious magnificence model Estee Lauder stated in an announcement Tuesday that it has agreed to purchase designer Tom Ford’s firm for $2.3 billion.

The deal, which values ​​Ford’s enterprise at $2.8 billion, will see the American trend famous person stay in his function as inventive director till the top of subsequent yr, the assertion stated.

Bringing the model below the “administration” of Estee Lauder Firms (ELC) will “allow the continuity and additional evolution of the Tom Ford model as one of many preeminent world luxurious manufacturers of the twenty first century,” New York-based ELC stated. he stated in his assertion.

The deal contains the Tom Ford Magnificence assortment of cosmetics and fragrances, with which Estee Lauder already has a licensing settlement till 2030.

Estee Lauder additionally owns main manufacturers reminiscent of MAC cosmetics, Clinique and La Mer facial merchandise and Aveda.

The group expects Tom Ford Magnificence to achieve gross sales of 1 billion {dollars} a yr inside two years, banking on the success of its luxurious perfumes in the USA and China.

“We’re extremely pleased with Tom Ford Magnificence’s success in luxurious perfume and make-up and its dedication to creating fascinating, high-quality merchandise for essentially the most discerning customers world wide,” Estee Lauder stated in an announcement. Fabrizio Freda

“This strategic acquisition will open up new alternatives and strengthen our progress plans for Tom Ford Magnificence,” he added.

The deal additionally contains licenses for the model’s males’s and girls’s trend strains, eyewear label and equipment and underwear divisions, in line with the assertion.

Mental property rights

The acquisition of Tom Ford will give Estee Lauder mental property rights to all of its strains.

The corporate will now not need to pay royalties for Tom Ford Magnificence and can be capable of make the most of new income streams by granting its personal licenses.

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The settlement contains particularly the extension and enlargement of the license granted by Tom Ford to Ermenegildo Zegna for the strains of clothes, equipment and underwear.

The license at the moment granted to Marcolin for Tom Ford eyewear may even be prolonged.

“I could not be happier with this acquisition as The Estee Lauder Firms is the perfect residence for the model,” Ford, 61, stated within the assertion.

Domenico De Sole, president of Tom Ford Worldwide, will stay with the corporate as a marketing consultant till Ford leaves on the finish of 2023, in line with the ELC assertion.

Ford, who first launched his model in 2005, is the present head of the Council of Style Designers of America.

He launched the movie manufacturing firm Fade to Black in 2005 and beforehand labored as inventive director at Gucci and Yves Saint Laurent within the Nineteen Nineties and early 2000s.

In response to the Wall Road Journal, different teams had been within the race to purchase Tom Ford, together with the French firm Kering, which owns the manufacturers Gucci, Saint Laurent and Balenciaga.

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