NEW YORK and LONGARONE, Italy—The Estee Lauder Companies (ELC) (NYSE: EL) announced the completion of its acquisition of the Tom Ford brand on Aug. 28 and the company is now the sole owner of the brand and all its intellectual property. ELC said its stewardship and its licenses with Ermenegildo Zegna N.V. (NYSE: ZGN) for fashion and accessories and Marcolin Group for eyewear will "provide continuity and allow for the further evolution of the Tom Ford brand as one of the preeminent global luxury brands of the twenty-first century."

On the same day, Marcolin Group reconfirmed its long-term license with Estee Lauder Companies for Tom Ford Eyewear. The agreement was initially reported in November of last year. Marcolin's recent statement said, "This represents a substantial extension of Marcolin’s license with Tom Ford. The new license agreement is perpetual and provides for an upfront payment by Marcolin of $250 million to Tom Ford, which is now owned by ELC. This was funded by a combination of cash on balance sheet and a capital increase of €75 million by Marcolin’s shareholders."

The Estee Lauder Companies' announcement added, "As previously announced, the deal values the total enterprise at $2.8 billion. At closing, ELC paid approximately $2.25 billion. This amount was funded by cash on hand and proceeds from the issuance of commercial paper, as well as $250 million received from Marcolin. An additional aggregate amount of $300 million in deferred payments from ELC to the sellers becomes due beginning in July 2025. The remainder of the total enterprise valuation is reflected in the acquisition of Tom Ford Fashion by Zegna Group."

Effective with the closing, ELC announced the appointments of Guillaume Jesel to president and CEO of the Tom Ford brand and Peter Hawkings to creative director. Each has been working in the Tom Ford beauty and menswear businesses for many years.

Tom Ford and Domenico De Sole will continue to serve as brand advisors to ELC through the end of calendar 2023. About the new leadership appointments, Ford said, “I could not be happier with the acquisition of the Tom Ford brand by The Estée Lauder Companies."

He added, “Marcolin has been an excellent partner in producing and distributing TF eyewear since the inception of the brand and I have enjoyed close collaboration with Maurizio Marcolin and his talented team for many years now. These companies, under the brand stewardship of The Estée Lauder Companies, provide me with confidence that the Tom Ford brand will continue to be something that I will be proud of for many years to come.”