French luxury goods company Kering said Sunday it is selling its beauty division to L’Oreal for 4 billion euros ($4.66 billion). Under the agreement, Clichy, France-based L’Oreal will acquire the House of Creed high-end fragrance company as well as licenses to create beauty and fragrance products for Kering brands like Gucci, Bottega Veneta and Balenciaga. The companies said they will establish a strategic committee to ensure coordination between Kering brands and L’Oréal. Kering and L’Oréal said they ar ...

Kering SA agreed to sell its beauty division to L’Oreal SA as part of a long-term strategic alliance, with Chief Executive Luca de Meo seeking to turn around the French luxury giant’s fortunes.The owner of fashion brands including Gucci said the deal aims to accelerate growth, according to a statement issued by both companies on Sunday night.The deal is valued at €4 billion ($4.7 billion), according to the statement. Kering launched its beauty division in 2023. The company acquired high-end fragrance label ...

Kering SA agreed to sell its beauty division to L’Oreal SA as part of a long-term strategic alliance, with Chief Executive Luca de Meo seeking to turn around the French luxury giant’s fortunes. https://t.co/kvMWoUKLYg ...

Core Insights - Kering and L'Oréal have officially announced a long-term strategic partnership focused on beauty and wellness [1] Group 1: Partnership Details - The agreement includes L'Oréal's acquisition of the House of Creed and grants L'Oréal a 50-year exclusive license for creating, developing, and distributing fragrance and beauty products for Gucci, starting after Kering's current license with Coty expires [2] - The partnership also encompasses 50-year exclusive licenses for Bottega Veneta and Balenciaga, effective upon the transaction's closure [3] - The total value of the agreement is set at 4 billion euros, to be paid in cash at closing, which is anticipated in the first half of 2026. Additionally, L'Oréal will pay royalties to Kering for the use of its licensed brands [3] Group 2: Future Opportunities - Beyond beauty, Kering and L'Oréal plan to explore business opportunities at the intersection of luxury, wellness, and longevity through a 50/50 joint venture [4]

Core Insights - Kering, the owner of Gucci, has agreed to sell its beauty business to L'Oreal for 4 billion euros, equivalent to approximately $4.66 billion, as part of a strategic move by new CEO Luca de Meo to address the luxury group's high debt levels [1] Company Summary - The sale of Kering's beauty business marks a significant shift in the company's strategy under the leadership of CEO Luca de Meo [1] - The transaction is valued at 4 billion euros, indicating a substantial investment by L'Oreal in expanding its portfolio [1] Industry Context - This acquisition by L'Oreal reflects ongoing consolidation trends within the beauty industry, as companies seek to enhance their market positions and product offerings [1] - The deal may influence competitive dynamics in the luxury beauty segment, potentially impacting other players in the market [1]

Core Insights - Kering and L'Oréal have announced a long-term strategic partnership in luxury beauty and wellness, which includes the acquisition of the House of Creed by L'Oréal and exclusive licenses for Kering's iconic brands [3][4][5] - The partnership aims to leverage the strengths of both companies to accelerate growth in high-potential categories and explore new business opportunities in wellness and longevity [4][8] - The total value of the agreement, including the sale of Creed and the establishment of 50-year licenses, is estimated at €4 billion, with cash payment expected in the first half of 2026 [7] Company Summaries Kering - Kering is a global luxury group that encompasses various creative Houses, including Gucci, Saint Laurent, and Bottega Veneta, and generated revenue of €17.2 billion in 2024 [10] - The company aims to enhance the development of fragrance and cosmetics for its major Houses through this partnership, similar to the success achieved with Yves Saint Laurent Beauté under L'Oréal's management [9] - Kering will grant L'Oréal exclusive licenses for the creation and distribution of fragrance and beauty products for Gucci, Bottega Veneta, and Balenciaga, starting after the expiration of existing agreements [6][7] L'Oréal - L'Oréal is the world's leading beauty company, with a portfolio of 37 international brands and sales amounting to €41.18 billion in 2023 [11][12] - The partnership with Kering will solidify L'Oréal's position as the top luxury beauty company and expand its reach into new segments, particularly in the niche fragrance market through the House of Creed [9] - L'Oréal's expertise in beauty innovation will be combined with Kering's understanding of luxury clients to create new experiences and services in wellness [8][9]

Press release - Kering and L'Oréal forge a beauty alliance - 20251019 PRESS RELEASE  KERING AND L’ORÉAL FORGE AN ALLIANCE IN BEAUTY AND WELLNESS Paris and Clichy, France. October 19, 2025 – Kering and L’Oréal announced today that they are entering a long-term strategic partnership in luxury beauty and wellness. This binding agreement encompasses the acquisition of the House of Creed by L’Oréal, the beauty and fragrance licenses of iconic Houses of Kering and an exclusive venture to explore business opportun ...

Core Insights - Kering and L'Oréal have announced a long-term strategic partnership in luxury beauty and wellness, which includes the acquisition of the House of Creed by L'Oréal and exclusive licenses for Kering's iconic brands [3][4][5] - The partnership aims to leverage the strengths of both companies to accelerate growth in high-potential categories and explore new business opportunities in wellness and longevity [4][8] Company Overview - Kering is a global luxury group with a portfolio of renowned brands including Gucci, Saint Laurent, and Bottega Veneta, generating €17.2 billion in revenue in 2024 [10] - L'Oréal is the world's leading beauty player, with a diverse portfolio of 37 international brands and sales of €41.18 billion in 2023, focusing on sustainability and innovation [11][12] Strategic Details - The agreement includes a €4 billion valuation, with Kering selling Kering Beauté, including Creed, to L'Oréal, and granting 50-year exclusive licenses for Gucci, Bottega Veneta, and Balenciaga [7][6] - A strategic committee will be established to ensure coordination between Kering brands and L'Oréal, monitoring the partnership's progress [7] Market Positioning - The partnership is expected to solidify L'Oréal's position as the world's 1 luxury beauty company and enhance Kering's fragrance and cosmetics development [9] - The collaboration aims to tap into the fast-growing niche fragrance market and expand into new segments of luxury beauty [9]

Core Insights - The fragrance category is experiencing growth challenges but has a strong outlook due to its expansion into new markets and sectors [1] - L'Oréal's potential acquisition of Kering Beauty could significantly enhance its perfume portfolio, which has been a major growth driver in the beauty market [2][5] - The deal could reshape the beauty market landscape and lead to unexpected mergers among companies and brands [3] Group 1: L'Oréal and Kering Beauty Acquisition - A $4 billion sale of Kering's beauty unit to L'Oréal is nearing completion, which could be a transformative move in the beauty industry [5] - The acquisition would allow L'Oréal to add luxury brands like Bottega Veneta, Balenciaga, and Creed to its portfolio, enhancing its competitive position [6][7] - Kering's divestiture of its beauty division is part of a broader strategy to address financial struggles and reinvest in its core brands [4][20] Group 2: Market Implications - The acquisition could intensify competition in the fragrance market, particularly against Coty Inc. and Estée Lauder [9][10] - Kering's financial difficulties, including a significant debt load of €9.5 billion, are influencing its decision to sell its beauty division [21][23] - The fragrance market is projected to generate $62.11 billion in sales this year, indicating a highly fragmented and competitive landscape [8] Group 3: Kering's Strategic Moves - Kering Beauty's sales increased by 9% in the first half of the year, driven by strong performance from Creed fragrances [27] - The company has been focusing on relaunching its fragrance lines and exploring new market opportunities, particularly in Asia [28] - Kering's previous acquisition of Creed for €3.5 billion has raised concerns about value destruction and the sustainability of its beauty strategy [30][31]

Core Insights - Kering Group plans to sell its beauty division to L'Oréal for approximately $4 billion, which includes the development rights for several luxury beauty brands [1][9] - The sale is seen as a strategic move for Kering to alleviate its debt crisis and refocus on its core brands, while L'Oréal aims to strengthen its position in the luxury beauty market [1][9] Kering Group's Strategy - Kering's beauty division includes brands like Creed, Bottega Veneta, Balenciaga, and McQueen, and the sale allows Kering to retain its core brand assets while monetizing the beauty segment [3][9] - The new CEO, Luca de Meo, known for his turnaround strategies in the automotive industry, is implementing significant changes within Kering, including leadership changes in its core brand Gucci [4][5] Financial Performance - Kering's beauty division has been a highlight in its financial reports, with beauty revenue reaching €323 million in 2024 and a 9% growth rate in the first half of 2025 [6][7] - Despite the beauty segment's growth, Kering's overall performance has been declining, with a 16% drop in revenue to €7.587 billion and a 46% decrease in net profit to €474 million in the first half of 2025 [7][8] L'Oréal's Acquisition Strategy - The acquisition of Kering's beauty brands aligns with L'Oréal's strategy to enhance its luxury beauty portfolio, as it has been actively acquiring high-end brands to solidify its market position [9][10] - L'Oréal's recent acquisitions include stakes in luxury brands like Amouage and Jacquemus, indicating a focused effort to expand its luxury fragrance offerings [9][10] Market Context - The beauty industry is facing challenges such as reduced social engagement and the rise of home culture, leading to a contraction in the market, particularly affecting traditional beauty brands [10] - Analysts suggest that while the acquisition may provide short-term growth for L'Oréal, it does not address the underlying issues facing the beauty industry, including increased competition from luxury brands and emerging Chinese beauty companies [10]