Estee Lauder to buy designer brand Tom Ford

Luxury cosmetics firm Estee Lauder will buy designer fashion house Tom Ford in a deal worth $2.8bn (£2.4bn), the company has announced.

The deal would be Estee Lauder's biggest acquisition to date.

The US beauty firm already licenses Tom Ford fragrances and cosmetics, and beat off competition from Gucci owner Kering SA to clinch the deal.

Estee Lauder said the acquisition would "unlock new opportunities". Ford said it was the ideal home for the brand.

Tom Ford said in a joint statement with Estee Lauder: "I could not be happier with this acquisition as The Estée Lauder Companies... 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."

Tom Ford himself will remain in his current position as creative director, the companies announced.

Following the news, shares in Estee Lauder fell slightly in after-hours trading.