Estee Lauder set to buy Tom Ford

The Estee Lauder Cos. is acquiring luxury powerhouse Tom Ford in a deal valued at $2.8 billion, marking the beauty firm’s biggest acquisition yet.

As part of the deal announced Tuesday, Ermenegildo Zegna Group and Marcolin will enter long-term license agreements for Tom Ford fashion and Tom Ford eyewear, respectively.

While Estee Lauder said the deal values the total enterprise at $2.8 billion, the New York-based beauty company is expected to pay roughly $2.3 billion, after a $250 million payment from Italian eyewear manufacturer Marcolin.

The purchase, subject to regulatory approvals, is slated to close in the first half of 2023.