Cosmetics giant Estée Lauder is reportedly close to completing a deal to buy Tom Ford for the sum of $2.8 billion, including debt.
Tom Ford has this week entered exclusive negotiations with Estée Lauder, which sells cosmetic brands such as MAC, Clinique and Aveda, and a deal could be announced as early as Monday, according to Financial Times.
For New York-based Estée Lauder the acquisition of Tom Ford would be its biggest and latest in a series of transactions, including taking full control of Canadian beauty group Deciem for about $1bn in 2021.
Goldman Sachs was hired to explore a sale of Tom Ford earlier this year and has received interest from other luxury brands including Gucci owner Kering.
Estée Lauder already has a longstanding licensing agreement for Tom Ford’s beauty and fragrance products, which could have complicated a deal with Kering.
As part of the combination with Tom Ford, which was launched by the eponymous fashion designer in 2005, Estée Lauder would also acquire the apparel business, an area that it has relatively little experience in.