Kering divests beauty division to L’Oréal in USD 4.6B deal
This alliance builds on the long history of collaboration between the two groups
FRANCE – L’Oréal is set to enter a long-term strategic partnership with Kering in the luxury beauty and wellness sectors, marked by a €4 billion(USD 4.65 billion) agreement.
As part of this deal, L’Oréal will acquire Kering Beauté, including the heritage fragrance house Creed, which is highly regarded for its craftsmanship and use of rare natural ingredients.
Creed will be integrated into L’Oréal Luxe, positioned to accelerate its global growth in both men’s and women’s markets.
In addition, L’Oréal will receive exclusive 50-year licenses to create, develop, and distribute fragrance and beauty products for Kering’s iconic fashion brands Gucci, Bottega Veneta, and Balenciaga, with the Gucci license commencing after the expiration of the current Coty agreement.
The transaction, subject to regulatory approvals and French employment law obligations, is expected to close in the first half of 2026, with royalties paid by L’Oréal to Kering for the licensed brands.
Luca de Meo, CEO of Kering, stated, “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.”
A strategic committee will be formed to ensure coordination between Kering and L’Oréal, and the companies will also establish a 50/50 joint venture to explore innovative business opportunities in wellness and longevity by combining L’Oréal’s expertise in innovation with Kering’s deep understanding of luxury clients.
This alliance builds on the long history of collaboration between the two groups and aims to accelerate growth and unlock significant value in high-potential categories.
L’Oréal CEO Nicolas Hieronimus highlighted that this partnership strengthens L’Oréal’s position as the world’s top luxury beauty company and expands its reach into dynamic luxury segments.
This move comes after Kering recently issued a €750 million (USD 850.5 million) bond as part of its strategy to strengthen its presence in the luxury beauty and personal care sector.
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