Latham & Watkins has advised Marcolin S.p.A. and its shareholders in the negotiation of a long-term license with The Estée Lauder Companies (ELC) for TOM FORD eyewear. This represents a substantial extension of Marcolin’s current license with TOM FORD. The new license agreement will be perpetual and provides for an upfront payment by Marcolin of US$250 million to TOM FORD, which at the time will be owned by ELC. This will be funded by a combination of cash on balance sheet and a capital increase of at least €50 million by Marcolin’s shareholders.
This license is contingent upon the closing of the acquisition of TOM FORD by ELC, for a total enterprise value of US$2.8 billion, which is expected to occur during the first half of calendar 2023.
The Latham team was led by Milan corporate partner Stefano Sciolla and Boston corporate partners Todd Gleason and Sarah Gagan, with Orange County associate Takeshi Sumida and New York associate Pelin Serpin. Advice was also provided on finance matters by Boston partner Susan Parker and Los Angeles partner Ted Dillman, with Los Angeles associate Shawn Hansen; on sanctions matters by Washington, D.C. counsel Andrew Galdes; on Italian law matters by Milan partner Giovanni Sandicchi, with counsel Cesare Milani and associate Andrea Stincardini; and on US capital markets matters by Milan partner Jeffrey Lawlis and Paris partner Roberto Gaskin, with Milan associate Chiara Coppotelli.