Kering is selling its beauty division to L’Oreal for $4 billion euros ($4.66 billion).
This binding agreement encompasses the acquisition of the House of Creed by L’Oréal, the beauty and fragrance licenses of Houses of Kering, and the rights to enter into a 50-year exclusive license for the creation, development, and distribution of fragrance and beauty products for Gucci (commencing after expiration of the current license with Coty, and respecting the Kering group’s obligations as per the existing license agreement). Kering will also grant L’Oréal 50-year exclusive licenses for the creation, development, and distribution of fragrance and beauty products for Bottega Veneta and Balenciaga, starting upon closing of the announced transaction.
The agreement contains customary terms and conditions, including regulatory approvals. The agreement is also subject to Kering’s obligations under French employment law, with the right for Kering to sell Kering Beauté to L’Oréal and an exclusivity granted to L’Oréal. Closing is expected in the first half of 2026. L’Oréal will pay royalties to Kering for the use of its licensed brands.
The two companies will also join forces to explore business opportunities in the field of wellness and longevity.
A strategic committee will be established to ensure coordination between Kering brands and L’Oréal and monitor the progress of the partnership.
“This strategic alliance marks a decisive step for Kering,” says Luca de Meo, CEO of Kering, in a news release. “Joining forces with the global leader in beauty, we will accelerate the development of fragrance and cosmetics for our major Houses, allowing them to achieve scale in this category and unlock their immense long-term potential, as did Yves Saint Laurent Beauté under L’Oréal’s stewardship. Together, we will also venture into new frontiers of wellness, combining the unrivalled expertise of L’Oréal with our unique luxury reach. This partnership allows us to focus on what defines us best: the creative power and desirability of our Houses.”
“I am delighted to forge this long-term strategic alliance with one of the world’s most prestigious, creative, and visionary luxury groups. This partnership will further solidify our position as the world’s #1 luxury beauty company and allow us to explore new avenues in wellness together,” adds Nicolas Hieronimus, CEO L’Oréal Groupe. “The addition of these extraordinary brands perfectly complements our existing portfolio and significantly expands our reach into new, dynamic segments of luxury beauty. Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market. Gucci, Bottega Veneta, and Balenciaga are all exceptional couture brands with enormous potential for growth.”
