L’Oréal Anticipated to Procure Kering Beauty for $4.6 Billion USD

The deal encompasses the luxury fragrance brand Creed and exclusive licensing for Gucci, Bottega Veneta, and Balenciaga cosmetic items for a duration of 50 years.

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L’Oréal has finalized a significant agreement to purchase Kering’s complete beauty portfolio for around $4.6 billion USD (€4 billion EUR), poised to transform the premium cosmetics sector. The contractual agreement encompasses the sale of Kering’s beauty division and establishes a long-term strategic partnership between the two French conglomerates in the luxury and wellness industries.

The essence of the agreement is L’Oréal’s purchase of the prestigious fragrance brand Creed, which promptly positions L’Oréal as a prominent contender in the rapidly expanding niche fragrance sector. L’Oréal obtains exclusive 50-year rights for the production, development, and distribution of fragrance and beauty products for Kering’s premier premium brands, including Gucci, Bottega Veneta, and Balenciaga. The decision arises as Kering confronts the challenges posed by the economic decline in the premium sector. Kering has been one of the most adversely affected large conglomerates in the sector, and the sale would facilitate greater liquidity to concentrate on fashion.

Kering's strategic initiative, one of the initial significant acts by new CEO Luca de Meo, is a crucial effort to diminish the luxury group's considerable debt and realign resources with its primary fashion operations. Luca de Meo stated, “By collaborating with the global leader in beauty, we will expedite the advancement of fragrance and cosmetics for our principal Houses, enabling them to attain scale in this sector and realize their significant long-term potential, similar to Yves Saint Laurent Beauté under L’Oréal’s management.” This collaboration enables us to concentrate on our defining attributes: the creative prowess and appeal of our residences. Nicolas Hieronimus, CEO of L’Oréal, described the acquisition as a strategic action that will "further solidify our position as the world’s leading luxury beauty company." The all-cash transaction, pending regulatory approval, is anticipated to conclude in the first half of 2026.