Tom Ford is being acquired by Estée Lauder for $2.8 billion.
Tom Ford will still be creative director until 2023 at least
The Estée Lauder licensed Tom Ford Beauty line boosted sales upon its launch in 2006, and it's expected to bring in net profits of $1 billion over the coming years.
And now, cosmetics giant Lauder will expand its business with the designer brand, starting with apparel.
The Tom Ford Eyewear license owner, Marcolin, will pay $250 million towards the sale.
Ford said: "I could not be happier with this acquisition."
Fabrizio Freda, president and CEO of Estée Lauder, said: “This strategic acquisition will unlock new opportunities and fortify our growth plans for Tom Ford Beauty. It will also further help to propel our momentum in the promising category of luxury beauty for the long-term while reaffirming our commitment to being the leading pure player in global prestige beauty.”
Tom Ford will remain creative director until 2023 at least.
In 2020, Ford urged the government to support fashion businesses as sales plummeted amid the coronavirus pandemic.
The 61-year-old fashion designer - who is also the chairman of the Council of Fashion Designers of America (CFDA) - called on the US government to announce help for fashion companies too, as part of the federal stimulus package from Washington.
In a statement, he said at the time: "I would suspect and hope that this is the chief focus of any fashion organisation now: taking care of their people. Inclusion of the fashion industry in the $1.6 trillion stimulus package expected to be released imminently is critical and of the utmost importance for us all. The CFDA understands that the industry needs immediate critical support and is working to access relief at the federal and local levels."
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