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Estée Lauder in talks to buy Tom Ford in over $3 billion deal, WSJ reports

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Estée Lauder Companies is in talks to buy Tom Ford in a deal valuing the fashion brand at at least $3 billion, according to the the wall street journalwho cited unnamed sources.

Estée Lauder is “particularly interested” in the beauty division, of which she already holds the license, the newspaper reported. Bloomberg reported last month that the brand had hired Goldman Sachs to a possible sale. Other suitors are interested in buying the fashion brand, WSJ said. Neither Tom Ford nor Estée Lauder could be immediately reached for comment. Fashionable business.

The Texas-born designer, famous for his work at Gucci and Yves Saint Laurent, established his label in 2004, focusing on cosmetics and fragrances, the high-margin drivers of many luxury brands, later adding clothing for men and for women. He released the Tom Ford Black Orchid fragrance in 2006 and a genderless line in 2007, with the launch of the Tom Ford Beauty collection in 2011.

Estée Lauder, which also owns Clinique, Jo Malone and Aveda, said Tom Ford Beauty’s sales rose double digits in its latest third quarter, fueled by new fragrance launches including Rose D’Amalfi and fragrances. “heroic franchises” such as Oud Wood. and ombré leather. Prestige Skincare is the fastest growing division for Estée Lauder; but Tom Ford Beauty is largely a luxury fragrance brand. Yet it also includes color cosmetics, men’s grooming products and skincare, and is among Estée Lauder’s “luxury brands” alongside Le Labo and La Mer. The beauty giant bought Korean skincare brand Dr Jart in 2019; and in 2021, took a majority stake in Canadian beauty brand Deciem in a tiered $1 billion buyout. The potential purchase of Tom Ford would be his biggest acquisition to date.

A private company, the Tom Ford brand does not communicate on its commercial performance.

In January this year, Tom Ford canceled his fall show, originally planned to cap off New York Fashion Week, citing problems caused by the Omicron variant at its Los Angeles workshop and factories in Italy. Then in May, he resigned as head of the Council of Fashion Designers of America. It is due to wrap up New York Fashion Week on September 14.

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