Report: Estée Lauder Could Buy Tom Ford For $3 Billion Or More

A report in the Wall Street Journal said the beauty conglomerate is in acquisition talks with the Los Angeles-based luxury fashion brand, which hit the market earlier this summer. Estée Lauder has long been licensed for Ford’s cosmetics and fragrance lines, which he co-developed with the group. (In 2017, Tom Ford was on track to generate nearly $2 billion, including eyewear, perfume, cosmetics, ready-to-wear, men’s and women’s accessories.)

Both Tom Ford and Estée Lauder declined to comment on the story.

If Estée Lauder bought Tom Ford, the group would likely choose to license the production and sale of non-beauty categories, including clothing and eyewear, to other companies. Either way, such a deal would mean a change in strategy for Estée Lauder, which typically acquires pure beauty brands. It could also be the largest acquisition ever. Estée Lauder’s acquisition strategy has produced mixed results in recent years. Securing ownership of an ultra-prestigious brand like Tom Ford — which has experienced double-digit revenue growth after the pandemic — is a less risky gamble than a fledgling startup. For Tom Ford, selling to a permanent partner could make for a smoother transition.

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