Estée Lauder Agrees to Buy Tom Ford Brand in $2.8 Billion Deal, But Not All of Its Stores
The new beauty company will be called Le Petit Tom Ford and will be based in Miami, as well as the brands’ first stores in that city.
The beauty titan says it will have more than 1,000 stores.
In a press statement, Estée Lauder said that the deal won’t affect all of the brand’s stores, but that the majority will remain open. Additionally, in a separate statement, the company said that it will be giving the company’s employees “a generous compensation package,” which aims to “allow them to be with the very people they want.”
“We are truly honoured to share this news with our talented team,” Estée Lauder said in the statement. “Our new business venture with Le Petit Tom Ford combines the beauty experience that we value with the values and values-related principles that we believe make us leaders in beauty and fashion.”
Estée Lauder has been in a similar deal several times in the past. In a report by USA Today, it was reported that Estée Lauder had agreed to buy Tom Ford beauty brand for $1.8 billion in 2014. The reported amount was down from the $2.1 billion purchase price that was reported by USA Today in 2014, and Estée Lauder had said that it intended to close 40 percent of its stores over the next year, while maintaining about two-thirds of its business.
The company also agreed to buy the brand for $1.9 billion in late 2014, and $750 million in late 2015. However, in late 2016, the company said that those two deals were cancelled as part of a deal where Estée Lauder would sell the brand to Nordstrom.
Following that announcement, Estée Lauder said that the deal with Le Petit Tom Ford would allow it to maintain its signature formulas and offer its customers the “unique aesthetic and experience” the brand has been known for.
Estée Lauder is not the only beauty brand that has purchased brands in the past. The brand has bought other brands in the past including