Estée Lauder nears $2.8bn deal to buy out Tom Ford – FT

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Nov. 11 (Reuters) – Estee Lauder Cos Inc. (EL.N) is set to strike a deal to buy Tom Ford for around $2.8 billion including debt, beating competition from a number of others interested in acquiring the luxury fashion brand, the FinancialTimes reported Friday, citing people briefed on the matter.

The luxury brand, founded by fashion designer Tom Ford, entered into exclusive negotiations with Estee Lauder this week and a deal could be announced as early as Monday, the FT reported.

The acquisition of Tom Ford would be the largest and the latest in a series of Estee deals, including the full takeover of Canadian beauty group Deciem for around $1 billion in 2021, according to the FT report.

Estee Lauder and Tom Ford did not immediately respond to Reuters requests for comment.

Estee shares rose about 4% in afternoon trading.

Earlier in August, The Wall Street Journal reported that Estee was in talks to acquire the luxury brand in what could be a $3 billion deal.

Le Journal later reported that French luxury group Kering(PRTP.PA) was also in advanced discussions to buy the fashion brand, competitor of Estée.

Tom Ford is known for its menswear, but also has womenswear, handbags, cosmetics and fragrances in its product line.

The move could help lipstick maker MAC bolster its luxury business which is already home to high-end fragrances and skincare products.

American luxury and beauty companies like Ralph Lauren (RL.N) and Estee have so far shrugged off the impact of inflation as wealthier shoppers continue to splurge on high-end clothes and shoes.

Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Anil D’Silva

Our standards: The Thomson Reuters Trust Principles.

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