The Estée Lauder Companies has announced that it has signed an agreement to acquire global luxury brand Tom Ford in a deal that values the total enterprise at USD 2.8 billion.

Estée Lauder was already the brand’s long-term partner in beauty under a license agreement signed in 2005, on the heels of its creation by Tom Ford and former Gucci Group President and Chief Executive Officer Domenico De Sole.

The deal, will allow ELC to secure the long-term cash flow from owning the fast-growing Tom Ford Beauty brand beyond the existing license expiration in 2030, and to eliminate royalty payments.

The deal will extend and expand the Tom Ford brand’s longstanding relationship with Ermenegildo Zegna to include a long-term license for all men’s and women’s fashion as well as accessories and underwear. As part of this transaction, Zegna will acquire operations of the Tom Ford fashion business necessary to perform its obligations as licensee. ELC and Zegna will align closely on the creative direction to continue building on the luxury positioning of the Tom Ford brand.

The brand’s current license with Marcolin, one of the leading global eyewear manufacturers, will also be substantially extended.

Under the agreement, Tom Ford, Founder and CEO of Tom Ford International, will continue to serve as the brand’s creative visionary through the end of calendar 2023. Domenico De Sole will stay on as a consultant until that same time.

Tom Ford Beauty is strongly positioned in the luxury fragrance and makeup categories, areas that are expected to outperform industry growth over the coming years.

We are incredibly proud of the success Tom Ford Beauty has achieved in luxury fragrance and makeup and its dedication to creating desirable, high-quality products for discerning consumers around the world,” said Fabrizio Freda, President and Chief Executive Officer, The Estée Lauder Companies.