Kering and L’Oréal forge an alliance in beauty and wellness

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]