By Omotayo Edubi
Fashion designer, Tom Ford, has been added to the list of billionaires after the sale of his luxury brand to cosmetics company Estee Lauder in a cash and debt deal worth $2.8 billion.
The 61-year-old will receive about $1.1 billion in cash from the sale, according to estimates by Forbes magazine.
The estimate is based on the designer’s 63.75 per cent stake in the company, according to a 2013 filing, and “he does not appear to have sold any of this stake since then”, Forbes added.
“He also owns at least two homes, including one in Holmby Hills in Los Angeles and another on New York’s Upper East Side that are worth a collective $65 million,” Forbes said.
“Altogether, Ford is now worth an estimated $1.2 billion.”
However, Ford will remain with the brand through the end of 2023, though his role beyond has not been specified.
Tom Ford’s beauty business includes fragrance, cosmetics and skin care. Before this deal, Estée Lauder has had a longstanding licensing agreement with Tom Ford.
The deal also brings apparel to Estée Lauder, which had been strictly focused on beauty, with a portfolio of brands that include La Mer, Bobbi Brown and Clinique.