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Kering is selling Kering Beauté to L’Oréal for €4 billion, the two companies announced on Sunday night, confirming information first reported by The Wall Street Journal on Saturday.
The agreement 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. L’Oréal will also pay royalties to Kering for the use of its licensed brands.
According to the release, Kering and L’Oréal are also 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 Luca de Meo, CEO of Kering. “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.”
“I am delighted to forge this long-term strategic alliance with one of the world’s most prestigious, creative and visionary luxury groups. 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,” said Nicolas Hieronimus, CEO of L’Oréal Groupe. “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.”
Kering Beauté was formed by the French group as a separate entity in 2023 under the leadership of previous CEO François-Henri Pinault, who remains chairman of the group, to support its houses in the development of the category. A few months later, Kering acquired 100 per cent of the high-end heritage fragrance house Creed in an all-cash deal that was reportedly valued at €3.5 billion. It launched Bottega Veneta fragrances in October 2024 and Balenciaga fragrances in early September this year. Sales of Kering Beauté in the first half of 2025 were €150 million, up 9 per cent year-on-year, according to the group. This represents a modest scale compared with beauty heavyweights that have firepower in beauty products’ distribution channels.
