In a deal worth $2.8 billion, Estée Lauder has announced the acquisition of Tom Ford and as part of its first entrance into luxury fashion, the beauty conglomerate also confirmed the expansion of Tom Ford’s existing licensing partnerships with Zegna.

As part of the agreement, Ford will continue to serve as the brand's creative visionary through the end of 2023 as will Tom Ford's longtime business partner and co-founder, Domenico De Sole, who will also continue to remain as a consultant until the end of 2023.

Known for his suits and glamorous ready-to-wear collections, the designer's fragrances and cosmetics section - introduced by Estée Lauder in 2005 - continue to dominate the brand's sales.

Kering, the fashion conglomerate that owns Gucci, and where Ford was Creative Director and responsible for the brand's revival in the 90's, has also been in talks to purchase Tom Ford. In spite of this, Estée Lauder's acquisition of Tom Ford will allow the brand to retain its makeup, skincare, and fragrance assets, thus increasing profits and entry into the lucrative luxury market.

I could not be happier with this acquisition as The Estée Lauder Companies is the ideal home for the brand. They have been an extraordinary partner from the first day of my creation of the company and I am thrilled to see them become the luxury stewards in this next chapter of the TOM FORD brand. Ermenegildo Zegna and Marcolin have been spectacular long-standing partners as well and I am happy to see the preservation of the great relationship that we have built over the past 16 years.

– TOM FORD.