What is Tom Ford's net worth? Designer sells luxury fashion empire to Estee Lauder for whopping $2.8B
LOS ANGELES, CALIFORNIA: In its largest transaction to date, Estee Lauder announced that it had reached a deal to buy American fashion house Tom Ford for $2.8 billion. Ford, 61, has now become a billionaire as a result of this deal. After taxes, the famous designer will take away around $1.1 billion from the transaction and will see an increase in his net worth to a total of $2 billion.
The designer will continue to work with the business as a "creative visionary" through the end of 2023. Tom Ford chairman Domenico De Sole will also continue his role as a consultant. De Sole's ownership in the business is estimated to be worth $259 million, luxury retailer Zegna's stake is estimated to be $345 million, while Grupo Americo Amorim owns a share to be worth nearly $230 million. Records suggest Ford personally owns 64% of the business and he has real estate interests worth about $65 million, according to Daily Mail. The deal will be finalized in the first few months of 2023. Estee Lauder stated that the addition of the Tom Ford brand will "unlock new opportunities."
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Estee Lauder has made several purchases recently, including a $1 billion purchase of Ordinary skincare brand owner Deciem in 2021. La Mer, Mac, and Clinique are just a few of Estee Lauder's well-known skincare brands.
After serving as Gucci's creative director for a while, Ford established his business in 2005. Sales rose from $230 million to $3 billion during his tenure at the Italian fashion clothing company. The fashion behemoth specializes in women's apparel, cosmetics, and perfumes in addition to menswear. He began selling Tom Ford Beauty in 2006. Ford, who currently is a part of the Council of Fashion Designers of America's president, has even formerly worked for Yves Saint Laurent.
Ford made a brief statement following the agreement, which stated, “Estee 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.”
What is the net worth of Tom Ford?
The net worth of the American fashion designer and creative director is $2 billion net worth, according to data from CelebrityNetWorth. He built his wealth as the founder of the Tom Ford brand and as the creative director of YSL and Gucci. Tom Ford's net worth will rise from $500 million to $2 billion after the deal. Estee Lauder paid for his company using a combination of cash, deferred payments, and debt assumption. It is the largest acquisition in the company's history.
Before the deal, Ford's brand picked up $1 billion in income annually from the sale of accessories, clothing, makeup, fragrance, and eyewear. Ford has a sizable portfolio of properties. He paid $18 million at the beginning of 2019 to purchase a four-story townhouse in New York City. He also owns a $40 million mansion in Holmby Hills, Los Angeles, which is close to the Playboy Mansion.