Tom Ford is a Freshly Minted Billionaire!
Tom Ford is now officially a billionaire after the beauty giant acquired the fashion designers brand for $2.8 Billion.
As a result of the purchase, Ford will net a cool $1.1 billion personally after tax. The companies had already worked together with Estee Lauder already having licenses in place to sell Ford’s cosmetics.
Earlier this year, Estee Lauder had slashed its profit projections for 2023 due to potential Covid-19 lockdowns in China. The company now says that the Tom Ford brand will make up a core part of their sales strategy going into next year.
Estee Lauder said on Tuesday it agreed to buy U.S. fashion label Tom Ford for $2.8 billion, its biggest deal yet, adding a line of beauty products and apparel to the Clinique brand owner’s portfolio.
This has catapulted Ford, 61, into billionaire status. He’s likely to net $1.1 billion personally from the deal after tax. The designer will stay on at the company as ‘creative visionary’ until the end of 2023. Tom Ford chairman Domenico De Sole will also remain as a consultant.
According to filings, Ford personally owns 64 percent of the company and has real estate holdings totaling around $65 million.
The acquisition will close in the early part of next year. Estee Lauder said that the addition of Tom Ford’s brand will ‘unlock new opportunities.’
Ford founded his company in 2005 after he spent time as the creative director of Gucci. During his time at the Italian fashion brand, sales increased from $230 million to $3 billion.
In addition to menswear, the fashion giant specializes in women’s clothing, cosmetics and perfumes.
In a brief statement following the deal, Ford said: ‘Estée Lauder Companies is the ideal home for the brand.’
Read the related article: Tom Ford: 10 Surprising Facts Every Fashion Lover Should Know
Ben is a fashion writer who enjoys travelling and visiting exotic places. He loves keeping fit and also enjoys city life.
