Estée Lauder Companies (ELC) is reportedly in talks to acquire US luxury fashion brand Tom Ford, in a potential US$3bn deal.
The acquisition would mark ELC’s first foray into the world of fashion, after primarily focusing on pure beauty throughout its existence.
An unnamed source informed The Wall Street Journal about discussions for the sale, which come after the fashion brand was placed on the market earlier this year.
Investment banking company Goldman Sachs was brought on at the time to handle the sale of the company, Bloomberg reported in July.
The owner of MAC and Clinique also reported sales of $4.25bn for its third quarter 2022 results in May, putting it in a strong position to acquire the business.
This was an increase of 10% from the $3.86bn it reported a year earlier, driven by double-digit growth in the US and Europe and strong e-commerce sales.
ELC currently owns the licences for Tom Ford’s cosmetics and fragrance ranges.
The two businesses originally collaborated together to create Tom Ford’s first signature scent in 2006 with Black Orchid.
A skin care and make-up line was then released in 2011 into Harrods and Selridges, featuring glosses, mascara and a ten-shade blush kit.
The brand then expanded further into the premium skin care category with the launch of the Tom Ford Research in 2019.
Brand founder and namesake Thomas Carlyle Ford began his career as a fashion designer and launched the luxury business in 2005.
He previously served as the Creative Director at Gucci and Yves Saint Laurent.