Estee Lauder buys Tom Ford

As mentioned before, Estee Lauder will buy Tom Ford. It held long time licenses for fragrances and cosmetics.

The purchase price is US$2.8bn.

The licensee for eyewear will pay the new owner US$250m upon closing.

The long term licensee for menswear, womenswear, and accessories remains. In addition it will run and manage the stores.

The market for luxury goods is growing continuously and is resilient to crisis. As proven by companies like LVMH, Kering and Richemont.

The brand sale is an excellent example of the strength and value of well-licensed brands. Provided, everyone involved understands teamwork, fair play, and works towards all partners to be successful .