Estée Lauder Cos. is close to announcing a deal for US luxury brand Tom Ford, according to people familiar with the matter.
The transaction will include licensing agreements of Tom Ford’s eyewear and apparel businesses to other brands, said one of the people, who asked not to be identified discussing private information. A deal could value Tom Ford at about US$2.8 billion, another person said.
Representatives for Estée Lauder and Tom Ford didn’t immediately respond to requests for comment.
Tom Ford has a long history with licensing. Estée Lauder is a long-term licensee to the brand’s beauty and fragrance products.
The deal would be the largest-ever for Estée Lauder, a cosmetics giant whose brands include MAC lipstick and Clinique moisturisers. The Financial Times reported earlier that Estée Lauder was nearing a deal with Tom Ford.
Estée Lauder fell 3.3 per cent to close at US$220.67 in New York trading on November 14, giving the company a market value of about US$79 billion.
Tom Ford, a 61-year-old Austin, Texas native, started his namesake company in 2005, a year after leaving Gucci, which he revitalised during a decade-long stint as creative director. He also was creative director for the house of Yves Saint Laurent following Gucci’s acquisition in 1999.
Source: Style
