Estée Lauder said Tuesday it clinched a deal to buy fashion label Tom Ford for $2.8 billion in what would be its biggest acquisition.

The deal will help Estée beef up its luxury offerings at a time when demand for high-end apparel and accessories remains resilient despite record inflation in the US.

Founded by fashion designer Tom Ford in 2005, the luxury brand is known for its menswear, but also counts women’s apparel, handbags, cosmetics and perfumes as part of its product line.

The deal is the latest in a series of acquisitions by Estée Lauder, including taking full control of Ordinary skincare brand owner Deciem last year for about $1 billion.

As of Tuesday’s close, the Estée stock fell 17% since the deal talks with Tom Ford were reported by the Wall Street Journal for the first time in August.

Tom Ford had entered into exclusive negotiations with Estée Lauder last week, beating competing bids from companies including Gucci owner Kering, the Financial Times reported on Friday.

Shares of Estée Lauder, which already licenses Tom Ford fragrances and cosmetics, fell marginally in extended trading.

Estée expects to fund the transaction through a combination of cash, debt and $300 million in deferred payments to sellers that become due beginning in July 2025, the company said.