A report in the Wall Street Journal said that the beauty conglomerate is in acquisition talks with the Los Angeles-based luxury fashion brand, which went on the market earlier this summer. Estée Lauder has long held the license to Ford’s cosmetics and fragrance lines, which he developed in partnership with the group. (In 2017, Tom Ford was on track to generate nearly $2 billion, including eyewear, fragrance, cosmetics, ready-to-wear, men’s and women’s accessories.)
Both Tom Ford and Estée Lauder declined to comment on the story.
If Estée Lauder were to buy Tom Ford, the group would likely choose to license the production and sales of non-beauty categories — including apparel and eyewear — to other companies. Regardless, such a deal would mark a change in strategy for Estée Lauder, which typically acquires pure beauty brands. It could also turn out to be its biggest acquisition ever. In recent years, Estée Lauder’s acquisition strategy has yielded mixed results. Securing the ownership of in an ultra-prestige brand like Tom Ford — which has experienced double-digit sales growth post-pandemic — is a less risky bet than a fledgling startup. For Tom Ford, selling to a longtime partner could make for a smoother transition.
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