MILAN–(COMMERCIAL WIRE)–Ermenegildo Zegna NV (NYSE: ZGN) (“Zegna” or “Zegna Group”) announced today that it has entered into an agreement to enter into a long-term license for TOM FORD fashion with The Estée Lauder Companies (“ELC”) . This license is contingent upon the closing of ELC’s acquisition of TOM FORD, which is expected to occur during the first half of calendar year 2023. ELC will be the sole owner of the TOM FORD brand and all of its intellectual property.
The Zegna Group, the owner of the Zegna and Thom Browne brands, will become a long-term licensee of ELC for all TOM FORD men’s and women’s fashion, as well as accessories and underwear, fine jewelry, children’s clothing, textiles and products. design for the home. The Estée Lauder Companies and Zegna Group will align closely on the creative direction to continue to build on the luxury positioning of the TOM FORD brand.
Zegna Group’s ambition is to position TOM FORD among the most respected and successful luxury fashion brands, leveraging the Zegna Group platform and capitalizing on the uniqueness of the TOM FORD brand.
Tom Ford, founder and CEO of Tom Ford International, will continue to serve as the brand’s creative visionary post-closing and through the end of the 2023 calendar.
“TOM FORD is one of the world’s most iconic and distinctive ultra-luxury brands and this next step together aligns perfectly with our strategy. We have been partners and shareholders of the TOM FORD fashion business since its inception and I have worked with Tom for many years and consider him a dear friend,” said Ermenegildo “Gildo” Zegna, CEO of Ermenegildo Zegna Group. “This transaction is our first since our listing on the New York Stock Exchange in December 2021 and confirms our commitment to leveraging our platform to create value for all of our stakeholders.”
Details of the transaction
Zegna’s 20-year license agreement with The Estée Lauder Companies allows for automatic renewal for another 10 years subject to certain minimum performance conditions. As part of this transaction, Zegna will acquire the operations of the TOM FORD fashion business necessary to fulfill its obligations as a licensee. The transaction, which Zegna will finance with cash on hand, is expected to generate earnings per share for Zegna shareholders within the first full year after closing (pre-synergies and related implementation costs). The transaction, which has been unanimously approved by the Board Zegna Board of Directors, expected to close in Q2 2023, subject to regulatory approvals and other customary conditions
In this transaction, Zegna received financial advice from UBS with a team led by Riccardo Mulone.
About the Ermenegildo Zegna Group
Founded in 1910 in Trivero, Italy by Ermenegildo Zegna, the Zegna Group designs, creates and distributes luxury men’s clothing and accessories under the Zegna brand, as well as women’s clothing, men’s clothing and accessories under the Thom Browne brand. Through its Platform of Luxury Textile Laboratories, which works to preserve the artisan factories that produce the best Italian fabrics, the Zegna Group manufactures and distributes the highest quality fabrics and textiles. The Group’s products are sold through more than 500 stores in 80 countries around the world, of which 299 are directly operated by the Group as of September 30, 2022 (242 Zegna stores and 57 Thom Browne stores). Over the decades, the Zegna Group has charted Our Road: a unique path that meanders through era-defining milestones that have seen the Group grow from a premium woolen fabric producer to a global luxury group. Our Journey has brought us to New York, where the Group has been listed on the New York Stock Exchange since December 20, 2021. And as we continue to progress on Our Journey to tomorrow, we remain committed to upholding the legacy of our founder, one that is based on the principle that a company’s activities should help the environment. Today, the Zegna Group is creating a lifestyle that keeps pace with modern times while continuing to foster ties with the natural world and with our communities that create a better present and future.
About the Estée Lauder Companies Inc.
The Estée Lauder Companies Inc. is one of the world’s leading manufacturers, marketers and sellers of quality skin care, makeup, fragrance and hair care products. The company’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, M A C, La Mer, Bobbi Brown, Aveda, Jo Malone London, Bumble and bumble, Darphin Paris, TOM FORD BEAUTY, Smashbox, AERIN Beauty, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, Too Faced, Dr.Jart+ and the DECIEM family of brands, including The Ordinary and NIOD.
This release contains forward-looking statements that are based on beliefs and assumptions and on information currently available to the Company. In some cases, you can identify forward-looking statements with the following words: “may”, “will”, “could”, “should”, “expects”, “intends”, “plans”, “anticipates”. , “believe”, “estimate”, “predict”, “project”, “potential”, “continue”, “ongoing”, “target”, “seek” or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Any statements that refer to expectations, projections or other characterizations of future events or circumstances, including strategies or plans related to the transaction described in this document, are also forward-looking statements. These statements involve risks, uncertainties and other factors that may cause actual results, activity levels, performance or achievements to differ materially from information expressed or implied in these forward-looking statements. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this press release, the Company cautions you that these statements are based on a combination of currently known facts and factors and projections for the future, which are inherently uncertain. In addition, risks and uncertainties are described in the Company’s filings with the SEC. These presentations may identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are beyond the control of the Company and are difficult to predict. Forward-looking statements in this communication include, but are not limited to, statements about the transaction described herein, including the timing and structure of the transaction and the benefits of the transaction. The Company cannot assure you that forward-looking statements in this communication will prove to be accurate. These forward-looking statements are subject to a number of risks and uncertainties, including, without limitation, the risk that the transaction will not be completed in a timely manner or not completed at all, and other risks and uncertainties, including those described in the forward-looking statements. the company. with the SEC. In light of the significant uncertainties in these forward-looking statements, you should not consider these statements as a representation or guarantee by the Company and its directors, officers or employees or any other person that the Company will achieve its objectives and plans in any way. specific. period of time, or at all. Forward-looking statements in this release represent the views of Zegna as of the date of this release. Subsequent events and developments may cause that view to change. However, while Zegna may choose to update these forward-looking statements at some time in the future, the Company disclaims any obligation to update or revise publicly forward-looking statements. Therefore, you should not rely on these forward-looking statements as representing the views of the Company as of any date after the date of this communication.