Maxi agreement in luxury. The US cosmetics giant Estée Lauder bought the fashion label Tom Ford. The operation is worth 2,8 billion, but the US company will disburse "only" 2,3 billion euros, plus another 300 million in deferred payments, starting from 2025. The other 250 million will be put Marcolin, which with Tom Ford has a licensing agreement. On the basis of the provisions, the fashion house will also extend the licensing agreement with Ermenegildo Zegna, which will take over the fashion business of Tom Ford to fulfill its obligations.
The details of the agreement between Estée Lauder and Tom Ford
It is of 'most expensive acquisition in Estée Lauder history, which has a market value of almost 100 billion dollars and which to win Tom Ford had to beat competition from Kering and other companies in the sector. The closing of the transaction is expected in the first half of 2023.
Throughout 2023 the founder and current CEO of his brand, Tom Ford, will continue to hold the role of creative director. “Tom Ford is one of the most iconic and distinctive brands in the ultra-luxury segment in the world and this step that sees us together aligns perfectly with our strategy – commented Gildo Zegna, CEO of the group -. We have been partners and shareholders of the brand since its inception and I have worked with Tom for many years, considering him a great friend. This transaction is the first since we went public on the New York Stock Exchange in December of 2021 and confirms our commitment to develop our platform to create value for all of our stakeholders."
At Zegna all the fashion activity
Going into the details of the agreement, the US giant will be the owner of the brand and related rights, but will Marcolin a perpetual license to continue producing the eyewear. In exchange Marcolin will pay 250 million dollars.
Go ahead and enter the business Zegna, which has had a licensing agreement for years to produce Tom Ford's men's collections and which will now take over all the clothing and accessories division. As expected, the Piedmontese company will in fact acquire a license to produce both the men's and women's collections exclusively under the Ford brand, for the next 20 years, but also kidswear, underwear, jewellery, as well as accessories and products in the Home and Textiles category.
