Sharjah24 – AFP: Luxury beauty brand Estee Lauder said in a statement Tuesday it had agreed to buy designer Tom Ford's company for $2.3 billion.
The deal, which values Ford's business at $2.8 billion, will see the US fashion superstar remain in his position as creative director until the end of next year, the statement said.
Bringing the brand under the "stewardship" of Estee Lauder Companies (ELC) "will allow for continuity and the further evolution of the Tom Ford brand as one of the preeminent global luxury brands of the twenty-first century," New York-based ELC said in its statement.
The deal includes the Tom Ford Beauty cosmetics and fragrance collection, with which Estee Lauder already has a licensing agreement until 2030.
Estee Lauder also holds major brands such as MAC cosmetics, Clinique and La Mer facial products, and Aveda.
The group expects Tom Ford Beauty to hit sales of one billion dollars a year within two years, betting on the success of its luxury perfumes in the United States and China.
"We are incredibly proud of the success Tom Ford Beauty has achieved in luxury fragrance and makeup and its dedication to creating desirable, high-quality products for discerning consumers around the world," head of Estee Lauder Companies Fabrizio Freda said in the statement.
"This strategic acquisition will unlock new opportunities and fortify our growth plans for Tom Ford Beauty," he added.
The deal also includes licenses for the brand's men's and women's fashion lines, eyewear label and accessories and underwear divisions, according to the statement.
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