In huge beauty news, Kering is selling Kering Beauté to L’Oréal for €4 billion, as the brands announced via a press release.
Building on the success of Yves Saint Laurent Beauté, this alliance further consolidates the long history of collaboration of two global leaders with complementary strengths — iconic luxury brands of Kering and the world-class expertise of L’Oréal in beauty — to accelerate growth and unlock considerable value across high-potential categories.
Under the terms of this agreement, Kering has the right to sell Kering Beauté including the House of Creed to L’Oréal. A true heritage name in haute parfumerie, Creed stands among the leading high-end luxury fragrance Houses, celebrated for its craftsmanship and mastery of rare natural ingredients.
As part of L’Oréal Luxe, Creed will be best positioned to accelerate even further its global development across both men’s and women’s markets.
The partnership includes the rights to enter into a 50-year exclusive license for the creation, development, and distribution of fragrance and beauty products for GUCCI, commencing after expiration of the current license with Coty, and respecting the Kering group’s obligations as per the existing license agreement.
Kering will also grant L’Oréal 50-year exclusive licenses for the creation, development, and distribution of fragrance and beauty products for Bottega Veneta and Balenciaga, starting upon closing of the announced transaction.
"I am delighted to forge this long-term strategic alliance with one of the world’s most prestigious, creative and visionary luxury groups," said L’Oréal Groupe CEO, Nicolas Hieronimus.
"This partnership will further solidify our position as the world’s #1 luxury beauty company and allow us to explore new avenues in wellness together."
"The addition of these extraordinary brands perfectly complements our existing portfolio and significantly expands our reach into new, dynamic segments of luxury beauty."
"Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market. GUCCI, Bottega Veneta and Balenciaga are all exceptional couture brands with enormous potential for growth," said Hieronimus.
The agreement is valued at €4 billion, payable in cash at closing, expected in the first half of 2026. L’Oréal will also pay royalties to Kering for the use of its licensed brands.
The press release said that beyond beauty, Kering and L’Oréal are joining forces to explore business opportunities at the intersection of luxury, wellness, and longevity. This exclusive partnership, in the form of a planned 50/50 joint venture, will craft cutting-edge experiences and services combining L’Oréal’s innovation capabilities with Kering’s deep understanding of luxury clients.
"This strategic alliance marks a decisive step for Kering," said Kering CEO, Luca de Meo.
"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."
Image credit: GUCCI/L’Oréal/Kering
