Tom Ford attends the CFDA Fashion Awards at The Pool and The Grill on Nov. 10, 2021, in New York. Estée Lauder is buying luxurious powerhouse Tom Ford in a deal valued at $2.8 billion.

Evan Agostini/Invision/AP

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Evan Agostini/Invision/AP

Tom Ford attends the CFDA Fashion Awards at The Pool and The Grill on Nov. 10, 2021, in New York. Estée Lauder is buying luxurious powerhouse Tom Ford in a deal valued at $2.8 billion.

Evan Agostini/Invision/AP

The Estée Lauder Cos. is buying luxurious powerhouse Tom Ford in a deal valued at $2.8 billion, marking the wonder agency’s largest acquisition but.

As a part of the deal introduced Tuesday, Ermenegildo Zegna Group and Marcolin S.p.A. will enter long-term license agreements for Tom Ford trend and Tom Ford eyewear, respectively.

While Estée Lauder mentioned the deal values the full enterprise at $2.8 billion, the New York-based magnificence firm is anticipated to pay roughly $2.3 billion, after a $250 million fee from Italian eyewear producer Marcolin SpA.

The buy, topic to regulatory approvals, is slated to shut within the first half of 2023.

Under the settlement, Tom Ford, founder and CEO of Tom Ford International, will stay the model’s artistic visionary by the top of 2023. Domenico De Sole, chairman of Tom Ford International, will keep on as a marketing consultant till that very same time.

Estée Lauder launched its Tom Ford Beauty line in 2006. In Estée Lauder’s fiscal 12 months that ended June 30, the model’s web gross sales grew almost 25% in comparison with the prior 12 months. The magnificence firm mentioned that within the subsequent few years it anticipate the wonder line to herald web gross sales of $1 billion.

“This strategic acquisition will unlock new opportunities and fortify our growth plans for Tom Ford Beauty,” mentioned Fabrizio Freda, president and CEO of Estée Lauder, in a press release. “It will also further help to propel our momentum in the promising category of luxury beauty for the long-term, while reaffirming our commitment to being the leading pure player in global prestige beauty.”

Estée Lauder mentioned it goals to finance the acquisition by a mix of money, debt and $300 million in deferred funds to sellers that turn out to be due starting in July of 2025.