US luxury giant Estee Lauder is close to a deal to buy high-end fashion company Tom Ford for about $2.8 billion, according to Wall Street Journal sources.
If formalized, it would be the cosmetics company’s largest-ever acquisition. Estee Lauder stock rose 2.5% on the news at the opening of the US session.
According to reports from the Wall Street Journal, the Tom Ford brand, founded by the former creative director of Gucci, would have entered the sights of Kering, the French group that owns Saint Laurent, Bottega Veneta and Balenciaga among others.
Despite the estimated competitive advantage that the group led by François-Henri Pinault would have over Estée Lauder, the company that already owns the brand’s beauty line and fragrances under licence, the deal initially estimated at a value of 3 billion could close shortly dollars (2.9 billion euros).
According to inside sources, talks with the owner of Gucci have not ended since the two sides have not reached an agreement. The conclusion of the deal between Tom Ford and Estee Lauder would underline the strength of the luxury sector despite the challenging macroeconomic context