The Estée Lauder Companies is in talks to purchase the American designer brand, Tom Ford in an astonishing $3 billion deal. The Wall Street Journal says that the potential deal would be Estée Lauder’s biggest acquisition ever, but added that Estée Lauder is not the only suitor for Tom Ford.
Estée Lauder already has a longstanding licensing arrangement for Tom Ford’s high-end beauty and fragrance lines. The cosmetics giant said recently that Tom Ford and Jo Malone, which it also owns, were each close to bringing in $1 billion a year in revenue.
It was reported back in June that Tom Ford was working with Goldman Sachs on a valuation of his namesake company, which encapsulates beauty, fragrance, apparel, eyewear and accessories.
By marketing itself as a beauty business, Tom Ford is looking to tap into some of the rich multiples paid for cosmetics and skincare labels over the past five years. The beauty industry is expected to grow to 70 billion by 2025, with Estée Lauders interest, it may show a trend towards Luxury fashion houses shifting their resources to focus on beauty over fashion. Join the discussion here on Instagram.