Estee Lauder completes acquisition of the Tom Ford brand

The Estee Lauder Companies (EL) has completed its acquisition of the TOM FORD brand and is now the sole owner of the TOM FORD brand and all its intellectual property. ELC’s stewardship and its licenses with Ermenegildo Zegna (ZGN) and Marcolin Group provide continuity and allow for the further evolution of the TOM FORD brand as one of the preeminent global luxury brands of the twenty-first century. As previously announced, the deal values the total enterprise at $2.8B. At closing, ELC paid approximately $2.25B. This amount was funded by cash on hand and proceeds from the issuance of commercial paper, as well as $250M received from Marcolin. An additional aggregate amount of $300M in deferred payments from ELC to the sellers becomes due beginning in July 2025. The remainder of the total enterprise valuation is reflected in the acquisition of TOM FORD FASHION by Zegna Group.