The Associated Press
The Estee Lauder Cos. is acquiring luxury powerhouse Tom Ford in a deal valued at $2.8 billion.
As part of the deal, announced Tuesday, Ermenegildo Zegna Group and Marcolin S.p.A. will enter long-term license agreements for Tom Ford fashion and Tom Ford eyewear, respectively.
The New York-based beauty company is expected to pay roughly $2.3 billion, after a $250 million payment from Italian eyewear manufacturer Marcolin SpA. Estee Lauder aims to finance the deal through a combination of cash, debt and $300 million in deferred payments to sellers that become due beginning in July of 2025.
The purchase, subject to regulatory approvals, is slated to close in the first half of 2023.
Under the agreement, Tom Ford, founder and CEO of Tom Ford International, will remain the brand’s creative visionary after closing and through the end of calendar 2023. Domenico De Sole, chairman of Tom Ford International, will stay on as a consultant until that same time.
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