Tom Ford is officially a billionaire with the help of the fashion and cosmetics brand Esteé Lauder. It only took a $2.8 billion deal to get the designer a part of Forbes’ global billionaire club.
Ford, 61, created Tom Ford, home of fashion, fragrance and cosmetics in 2005. He sold the million-dollar brand to fellow cosmetics company Esteé Lauder on Tuesday for $2.8 billion. The deal comes after much speculation over the past months of Esteé Lauder dominating the powerhouse in the industry.
The cosmetics company owns over 19 brands, including Jo Malone, MAC, Aramis, TOM FORD Beauty, Kilan, La Mer and more. The cosmetics house has over $17.7 billion in net sales.
The acquisition of Tom Ford is expected to complete by the first half of next year (2023). Esteé Lauder and Tom Ford already have a history, as the brands have been partners since 2006 when Tom Ford Beauty was acquired. The latest deal will fully integrate all brands with Tom Ford, including the clothing brand.
As expected, with the big deal, Ford is now on Forbes’ list of global billionaires, with the Esteé Lauder deal bringing in $1.1 billion a year to the designer. A truly smart move.
Ford previously owned 64% of the brand but will now stay on as a creative visionary.
Ford said in a statement that he “could not be happier with this acquisition as The Estée Lauder Companies is the ideal home for the brand.”
“They have 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,” he said.
Welcome to the billionaire’s club Tom Ford!