Estée Lauder Agrees to $2.8 Billion Deal for Tom Ford (2)

Estée Lauder Cos. agreed to buy Tom Ford at a valuation of $2.8 billion, its largest-ever deal.

The acquisition gives Estée Lauder ownership of the valuable licensing agreement the company has had to sell Tom Ford’s fragrance and beauty lines for almost two decades.

Estée Lauder will pay about $2.3 billion for the brand and all its intellectual property, funded by cash, debt and $300 million in deferred payments, while $250 million will come from eyeware manufacturer Marcolin SpA, whose existing license with Tom Ford will be extended, according to a statement Tuesday.

Tom Ford will also extend ...