This comes after Kering was reported to be in advanced talks to acquire the brand for a higher amount – around US$3 billion.
Following the acquisition, founder and CEO Tom Ford will continue to serve as the brand’s “creative visionary” through to the end of 2023, while Chairman Domenico De Sole will remain as a consultant.
The deal will also expand the brand’s existing relationship with Zegna Group including a long-term license for all men’s and women’s fashion as well as accessories and underwear.
Tom Ford said: “I could not be happier with this acquisition as The Estée Lauder Companies is the ideal home for the brand. They have been an extraordinary partner from the first day of my creation of the company and I am thrilled to see them become the luxury stewards in this next chapter of the Tom Ford brand.”