Estée Lauder prevails in auction to buy Tom Ford in deal worth $2.8 billion

Estée Lauder Cos.
EL,
+2.86%
will acquire Tom Ford in a deal valued at roughly $2.8 billion, building on a longstanding licensing agreement and marking the cosmetics giant’s largest-ever acquisition, executives said Tuesday.

Estée Lauder prevailed in an auction for the high-end fashion label that drew competition from big names in luxury including Kering SA
KER,
+1.00%.
The French company was poised to win the auction earlier this month, The Wall Street Journal reported.