Estée Lauder to buy designer brand Tom Ford for Rs625 billion

Estée Lauder, a luxury cosmetics brand, has announced that it will pay $2.8 billion to acquire Tom Ford, a luxury clothing brand.

This will be the US cosmetics company’s largest acquisition to date.

Estée Lauder won the contract over Gucci’s owner Kering SA by outbidding them. The company already licences Tom Ford cosmetics and fragrances.

The deal will “open new prospects,” according to Estée Lauder.

Tom Ford said in a joint statement with Estée Lauder: “I could not be happier with this acquisition.”

He said the Estée Lauder companies had been “an extraordinary partner from the first day of my creation of the company and I am thrilled to see them become the luxury stewards in this next chapter of the Tom Ford brand.”

The Council of Fashion Designers of America is currently led by Tom Ford, who first established his company in 2005. In the 1990s and early 2000s, he served as the creative director at Gucci and Yves Saint Laurent.

The companies declared that Tom Ford will continue serving as creative director for at least until 2023.

According to analysts, the luxury goods market is poised for global expansion at this moment, and China is gradually removing its coronavirus import limitations, allowing the high-demand consumers in this market to gradually resume their pre-pandemic spending habits.