By 
Estée Lauder Cos.
EL,
+2.86%
will acquire Tom Ford in a deal valued at roughly $2.8 billion, building on a longstanding licensing agreement and marking the cosmetics giant’s largest-ever acquisition, executives said Tuesday.
Estée Lauder prevailed in an auction for the high-end fashion label that drew competition from big names in luxury including Kering SA
KER,
+1.00%.
The French company was poised to win the auction earlier this month, The Wall Street Journal reported.
Estée Lauder is expected to pay roughly $2.3 billion, net of a $250 million payment from Italian eyewear manufacturer Marcolin SpA, which has its own licensing deal with Tom Ford. It plans to fund the transaction through a combination of cash, debt and $300 million in deferred payments to sellers that become due beginning in July of 2025.
The acquisition, still subject to regulatory approvals, is expected to close in the first half of 2023.
The Journal reported on Monday that an agreement between the two parties was imminent. The Financial Times reported on Friday that Estée Lauder was set to clinch a deal for closely held Tom Ford.
An expanded version of this report appears on WSJ.com.
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