Estee Lauder and Tom Ford, magnificence enterprise. The $3 billion stake

Magnificence is within the eye of the beholder. The thought will actually be legitimate if Estee Lauder Cos. Acquires the Tom Ford model for $3 billion.

Whereas the cosmetics group may covet full management of Tom Ford’s magnificence and perfume division, taking up the corporate’s garments and equipment can be rather more tough.

Estee Lauder is in talks to purchase the sweetness, eyewear and clothes model based by Gucci’s former artistic director in 2005. US media have claimed that Tom Ford is working with Goldman Sachs financial institution to “discover a possible sale”.

Estee Lauder already has a long-standing licensing settlement for Tom Ford’s high-end perfume and wonder product strains.

However the Tom Ford enterprise isn’t just about magnificence. It additionally has an eyewear enterprise, which is produced and distributed by Marcolin SpA. There is no such thing as a purpose why this association couldn’t proceed underneath Estee Lauder. The tougher half can be Tom Ford garments and equipment. Estee just isn’t a pure proprietor of a style home, so she ought to discover a luxurious companion with expertise within the clothes enterprise.

Most certainly, it is not going to be one of many bling-bling colossuses, reminiscent of LVMH Moet Hennessy Louis Vuitton or Kering, the proprietor of Gucci.

A smaller luxurious group like Ermenegildo Zegna Holditalia or Diesel would make extra sense. And Zegna already has a industrial relationship with Tom Ford. Domenico De Sole, the previous government director of Gucci, who’s now the president of the Tom Ford model, can be on Zegna’s board of administrators.

It’s unclear whether or not Ford himself can be a part of this association. Bloomberg Information reported {that a} deal might embrace an choice to work with the founder after the sale. That might go away a personal fairness agency eager to get its fingers on the sweetness enterprise as a possible purchaser.

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