Following months of speculation, Estée Lauder is set to acquire Tom Ford in a deal worth $2.8bn, marking the luxury beauty firm’s first move into the fashion world, and their biggest acquisition to date.

This major coup sees Estée Lauder fight off competition from other luxury brands, including French luxury conglomerate Kering, Ford’s former employers when the US designer was at the helm of Gucci.

Longtime partners, Estée Lauder has owned the license for Tom Ford Beauty since they launched it together in 2006, while this new deal will see Ermenegildo Zegna Group extend their existing licensing agreement, producing the house’s ready-to-wear. It’s also been reported that Ford will stay on as the brand’s “creative visionary” until 2023 at least.

“I could not be happier with this acquisition as The Estée Lauder Companies is the ideal home for the brand,” said Ford in a statement. “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. Ermenegildo Zegna and Marcolin have been spectacular long-standing partners as well and I am happy to see the preservation of the great relationship that we have built over the past sixteen years. With their full commitment, I trust they will continue the brand’s future as a luxury company that strives to produce only the highest quality fashion and eyewear.”