Estée Lauder is in talks to acquire Tom Ford brand - report
Cosmetics giant Estée Lauder Cos Inc is reportedly in talks to acquire ultra-luxury brand Tom Ford. If it does, it could be a $3 billion deal, the Wall Street Journal said at the start of August, citing sources close to the matter.
Lauder has made plenty of major purchases in its time but this would be the biggest acquisition ever for the deep-pocketed business. However, it doesn’t have the field to itself and WSJ also said that others are interested in buying the brand.
Neither Lauder nor Tom Ford have commented on the news story.
Ford is the big-name designer who revitalised Gucci in the late 1990s and the noughties and then moved on to make an impact with his own luxury fashion label. Importantly, he’s also made inroads into the luxury beauty sector with Lauder having the license for the brand's beauty operations.
If Lauder does manage to buy Tom Ford, it would add further weight to its diverse luxury offer at a time when its domestic market — the US — is booming, as well as global markets proving resilient.
It would be an interesting and unusual move for the business given that the Tom Ford business is best know for its fashion offer. It has a strong menswear arm, as well as producing womenswear and leathergoods in addition to fragrance and other beauty items.
Of course, it’s the beauty element that Lauder is most interested in and the report suggested that it could license the apparel and accessories operations.
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