NEW YORK – Estee Lauder is close to announcing a deal for American luxury brand Tom Ford, according to people familiar with the matter. 

The transaction will include licensing agreements of Tom Ford’s eyewear and apparel businesses to other brands, said one of the people, who asked not to be identified discussing private information. A deal could value Tom Ford at about US$2.8 billion (S$3.8 billion), another person said.

Representatives for Estee Lauder and Tom Ford did not immediately respond to requests for comment.

Tom Ford has a long history with licensing. Estee Lauder is a long-term licensee to the brand’s beauty and fragrance products. 

All the company’s suits were licensed to and produced by Italian fashion house Ermenegildo Zegna Holditalia until the fall and winter 2022 collection, when the exclusive rights were to expire, according to Zegna’s annual report.

Tom Ford’s eyewear is produced and distributed by Marcolin, an Italian manufacturer backed by private equity firm PAI Partners. 

The deal would be the largest ever for Estee Lauder, a cosmetics giant whose brands include MAC and Clinique. The Financial Times reported earlier that Estee Lauder was nearing a deal with Tom Ford.

Estee Lauder fell 3.3 per cent to close at US$220.67 in New York trading on Monday, giving the company a market value of about US$79 billion. 

Tom Ford, a 61-year-old native of Austin, Texas, started his namesake company in 2005, a year after leaving Gucci. He had revitalised the Italian fashion house during a decade-long stint as creative director. He was also creative director for the house of Yves Saint Laurent following Gucci’s acquisition in 1999. BLOOMBERG