Estee Lauder closes in on £2.4bn takeover of fashion house Tom Ford

Estee Lauder is closing in on a £2.4billion takeover of Tom Ford. 

The US beauty business is reportedly in exclusive discussions with the designer fashion house and a deal is expected as soon as this week. 

Sources familiar with the deal told the Financial Times that Estee Lauder would pick up Tom Ford’s beauty range as well as its clothing business, an area in which it has relatively little experience. 

The £70billion cosmetics group already owns the licence to Tom Ford Beauty, a fragrance and make-up line Ford made with Estee Lauder and launched in 2011. 

It would be Estee Lauder’s biggest takeover and the MAC, Clinique and Aveda group has beaten a number of rivals, including Gucci-owner Kering, in the battle for Tom Ford. 

The tie up would underline the resilience of the luxury cosmetics and clothing sector, where wealthy shoppers have brushed off the rising cost of living. 

Founded by fashion designer Tom Ford in 2005, the luxury brand is known for its menswear, but also counts women’s apparel, handbags, cosmetics and perfumes as part of its product line.

Its beauty range is believed to have performed especially well in China, a key growth market for both businesses