Estée Lauder: completes acquisition of Tom Ford brand
(CercleFinance.com) - After several weeks of speculation, last night Estée Lauder confirmed that it has reached an agreement to acquire the Tom Ford brand.
The deal, which the US cosmetics group describes as "transformative" for its future, is based on an enterprise value of 2.8 billion dollars.
Estée Lauder says it expects to pay 2.3 billion dollars, which it intends to finance through a combination of cash, debt and deferred payments through to 2025.
Under the terms of the agreement, Tom Ford, the founder and current CEO of Tom Ford International, would remain in his role until the end of 2023.
The New York-based group seems particularly interested in the brand's prestige fragrances, which are in the "top 15" of their category in the US and in the top 10 in China.
The Estée Lauder share was up over 2% in pre-market trading on Wednesday.
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