Kering To Sell Beauty Unit To L'Oréal For €4 Bln In Deal

(RTTNews) - Kering has agreed to sell its beauty unit—including the prestigious House of Creed—to L'Oréal for 4 billion euros. This move marks a major strategic partnership between the two companies, focused on luxury beauty, fragrance, and wellness.

Creed, known for its heritage in haute parfumerie and mastery of rare natural ingredients, will join L'Oréal Luxe. The brand is expected to accelerate its global growth across both men's and women's fragrance markets under L'Oréal's leadership.

As part of the agreement, L'Oréal will receive a 50-year exclusive license to create, develop, and distribute fragrance and beauty products for Gucci. This will begin after the current license with Coty expires. Similar long-term licenses for Bottega Veneta and Balenciaga will also be granted to L'Oréal, effective upon closing of the transaction.

To support the partnership, Kering and L'Oréal will establish a joint strategic committee to coordinate efforts and monitor progress across their brands. The total value of the deal—including the sale of Creed and the licensing agreements—is 4 billion euros, payable in cash at closing, which is expected in the first half of 2026. L'Oréal will also pay royalties to Kering for the use of its licensed brands.

Beyond beauty, the two companies plan to launch a 50/50 joint venture aimed at exploring new opportunities in luxury wellness and longevity. This initiative will combine L'Oréal's innovation capabilities with Kering's deep understanding of high-end clientele to deliver cutting-edge experiences and services.

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