Tom Ford (R), with Vogue Editor-In-Chief Anna Wintour, at New York City's CFDA Awards Nov. 11, 2021. Estee Lauder is buying the Tom Ford luxury brand in a deal valued at $2.8 billion. Photo courtesy of Tom Ford/Facebook
Nov. 16 (UPI) -- Estée Lauder agreed to buy the Tom Ford luxury brand, in a deal valued at $2.8 billion.
Founder and CEO Tom Ford will continue to serve as "the brand's creative visionary" after closing and through the end of 2023, according to Estée Lauder.
"As an owned brand, this strategic acquisition will unlock new opportunities and fortify our growth plans for Tom Ford Beauty," Fabrizio Freda, president and CEO, The Estée Lauder Companies, said in a statement. " It will also further help to propel our momentum in the promising category of luxury beauty for the long-term, while reaffirming our commitment to being the leading pure player in global prestige beauty."
Ford is a designer, film director and art collector in addition to his fashion business role.
"I could not be happier with this acquisition as The Estée Lauder Companies is the ideal home for the brand," Ford said in a statement. "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 of the Tom Ford brand."
Financial analysts said this luxury market deal comes as the luxury goods market seems poised for growth worldwide.
According to Bain and Company, the global luxury market is projected to grow by 21% in 2022, reaching $1.45 trillion, with further expansion for the rest of the decade.
The Tom Ford brand was created in 2005 with luxury fragrance and makeup lines. Ford's first directly owned store opened in New York City in 2007 when the company's menswear and accessory collections were launched. In 2010 Ford introduced a womenswear collection.
The Tom Ford brand has more than 100 stores around the world.
According to Estée Lauder, the Tom Ford brand had "strong double-digit net sales on a compound annual basis from fiscal years 2012 through 2022."
Estée Lauder markets makeup, fragrance, hair and skin products in approximately 150 countries and territories worldwide.