Tom Ford Is Now A Billionaire, Moving Up The Fashion Wealth Ladder
Photo 32458033 © Carrienelson1 | Dreamstime.com
Tom Ford’s secret to being wealthy? Sunglasses, cosmetics, and, oh—the unwavering faith of the Estée Lauder Companies.
On November 15, Estée Lauder announced that it has inked a deal to acquire the Tom Ford brand, valuing the luxury enterprise at US$2.8 billion. Ford, the founder, himself will bag about US$1.1 billion from the agreement after taxes, reports Forbes.
The acquisition raises the 61-year-old Ford’s net worth to over US$2 billion, as evaluated by the Bloomberg Billionaires Index. He held the majority share of the brand, as well as owned the licenses for the Tom Ford business’s eyewear, fragrances, and cosmetics, a source told Bloomberg News.
Estée Lauder’s buyout of the Tom Ford company is expected to be finalized in the first half of 2023. The conglomerate already has an existing tie-in with Tom Ford Beauty, and its license with the line was supposed to expire in 2030.
In the meantime, Ford will remain his company’s “creative visionary” until the end of next year.
“I could not be happier with this acquisition as The Estée Lauder Companies is the ideal home for the brand,” remarks Ford, who had served as Gucci’s creative director until 2004, in a press 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.”
Ford adds: “With their full commitment, I trust they will continue the brand’s future as a luxury company that strives to produce only the highest quality fashion and eyewear.”
[via Paper Magazine and Bloomberg, cover photo 32458033 © Carrienelson1 | Dreamstime.com]
