"Est?e Lauder in the US Nears Acquisition of Tom Ford for $2.8 Billion"

Largest Scale Ever Upon Successful Acquisition

(Photo by WSJ)

[Asia Economy Reporter Yujin Cho] U.S. cosmetics company Est?e Lauder is set to acquire luxury fashion brand Tom Ford for $2.8 billion (approximately 3.71 trillion KRW), Bloomberg reported on the 14th (local time).

Sources said Est?e Lauder is negotiating to acquire Tom Ford for $2.8 billion including debt, and the negotiation results are expected to be announced as early as the 15th.

Est?e Lauder has been competing with French luxury fashion group Kering, the parent company of Gucci, and others in the bidding for Tom Ford.

An anonymous insider stated, "With this deal, Est?e Lauder is expected to enter the fashion sector by signing license agreements for Tom Ford’s eyewear and apparel businesses."

Tom Ford, the world-renowned fashion designer famous as Gucci’s designer, founded the Tom Ford brand in 2005 under his own name. While well known for men's apparel, Tom Ford also offers women's clothing, accessories, cosmetics, and fragrances.

Especially, Tom Ford’s beauty business is considered an ultra-prestige brand, according to the Wall Street Journal (WSJ).

The WSJ commented, "This acquisition allows Est?e Lauder to venture into new fields and compete more closely with luxury fashion companies like Louis Vuitton Mo?t Hennessy (LVMH)."

If finalized, this acquisition will be the largest merger and acquisition (M&A) in Est?e Lauder’s history.

Est?e Lauder has grown through M&As in recent years, including acquiring Canadian cosmetics company Deciem for $1 billion last year.

Headquartered in New York, U.S., Est?e Lauder was founded in 1946. It focuses on hypoallergenic cosmetics and owns brands such as MAC, Clinique, and La Mer, with a market capitalization of $78.7 billion.

Est?e Lauder’s stock, listed on the New York Stock Exchange (NYSE), surged 4% intraday but closed down 3.31% from the previous session at $220.67.

Earlier, the Wall Street Journal reported in August that Est?e Lauder and Tom Ford were in acquisition talks.

This content was produced with the assistance of AI translation services.