Kering anounced on Sunday that it has agreed to sell its Kering Beauté division, including the House of Creed, to L’Oréal in a €4 billion deal that deepens the two French groups’ long-standing ties in luxury beauty.
The all-cash transaction, also includes long-term fragrance and cosmetics licences for Gucci, Bottega Veneta, and Balenciaga, and is expected to close in the first half of 2026.
The agreement marks Kering’s exit from direct management of its beauty operations, with L’Oréal taking over production and global distribution for its key fashion houses. T
he move follows the success of Yves Saint Laurent Beauté, which has been under L’Oréal’s stewardship for decades, and underscores both companies’ intention to unlock new growth in the high-end beauty market.
As part of the deal, Creed, one of the world’s leading luxury fragrance brands known for its artisanal perfumes and heritage, will join L’Oréal Luxe, where it is expected to expand across global markets. L’Oréal will also pay royalties to Kering for the use of its brand licences.
Kering CEO Luca de Meo said the transaction allows the group to focus on its “creative power and desirability,” while ensuring its Houses reach full potential in beauty through L’Oréal’s scale and expertise.
L’Oréal CEO Nicolas Hieronimus said the acquisition “perfectly complements our luxury portfolio” and cements L’Oréal’s position as the “world’s number one luxury beauty company.”
The agreement also includes plans for a 50/50 joint venture in wellness and longevity innovation.
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