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L’Oréal will acquire Kering’s entire beauty portfolio for approximately $4.6 billion (€4 billion). The deal includes exclusive 50-year licenses for luxury fragrance house Creed and beauty products from Gucci, Bottega Veneta and Balenciaga. The move will allow Kering to reduce debt and refocus on its core fashion business, while strengthening L’Oréal’s dominance in the luxury beauty market.
In a landmark deal aimed at reshaping the luxury beauty industry, L’Oréal has signed a deal to acquire Kering’s entire beauty portfolio for approximately $4.6 billion (€4 billion). The binding agreement not only includes the sale of Kering’s beauty division, but also forges a long-term strategic partnership between the two French giants in the luxury and wellness sector.
At the heart of this transaction is L’Oréal’s acquisition of the luxury fragrance house Creed, which immediately establishes L’Oréal as a major player in the rapidly growing niche fragrance market. In addition, L’Oréal has secured a highly valuable 50-year exclusive license to create, develop and distribute fragrance and beauty products for Kering’s flagship luxury brands, including Gucci, Bottega Veneta and Balenciaga. The move comes as Kering faces challenges due to the recession in the luxury goods industry. Kering has been one of the hardest hit of the industry’s major conglomerates, and the sale will free up more free-flowing capital to focus on fashion.
For Kering, this strategic move is one of the first major actions under new CEO Luca de Meo and is a decisive step towards reducing the luxury group’s high debt and refocusing resources on its core fashion business. Luca de Meo said in a statement: “By partnering with a world leader in the beauty industry, we will be able to accelerate the development of our flagship Maison’s fragrances and cosmetics, achieve scale in the category and unlock immense long-term potential, much as Yves Saint Laurent Beauté did under L’Oréal management. This partnership will allow us to focus on what makes us most distinctive: the creativity and the Maison’s charm.” L’Oréal CEO Nicolas Hieronymus said the acquisition was a move that would “further strengthen our position as the world’s number one luxury beauty company.” The all-cash transaction is subject to regulatory approval and is expected to close in the first half of 2026.
