Estée Lauder announced that it would be buying designer fashion house Tom Ford in a deal worth $2.8bn (£2.4bn).
The deal, which was announced late last night, is the luxury cosmetics biggest acquisition to date.
The French firm said the tie-up would “unlock new opportunities” for both sides.
Under the agreement, Tom Ford, Founder and CEO of Tom Ford International, will continue to serve as the brand’s creative visionary after closing and through the end of calendar 2023.
Ford said he “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,” he said, adding that he trusts they will continue the brand’s future as a luxury company that produces high quality fashion and eyewear.
Fabrizio Freda, President and Chief Executive Officer, The Estée Lauder Companies, said: “We are incredibly proud of the success TOM FORD BEAUTY has achieved in luxury fragrance and makeup and its dedication to creating desirable, high-quality products for discerning consumers around the world”.
The luxury goods is expected to get a much-needed uplift as the Chinese markets reopen after a lockdown slowdown.
Bloomberg data reckons that Chinese consumers accounted for 35 per cent of global demand for luxury goods before the pandemic.