Business21 October, 20253 min read
Kering Sells Beauty Division to L’Oréal in $4.66 Billion Debt Reduction Deal
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
Kering sells its beauty division to L’Oréal for approximately €4 billion to reduce debt. L’Oréal acquires fragrance brand Creed and 50-year exclusive beauty rights for Gucci and others.
6 outlets told this the same way.
Kering Beauty Sale to L’Oréal
Kering agreed to sell its beauty division to L’Oréal for €4 billion ($4.66 billion). The deal includes the Creed fragrance house and long-term beauty and fragrance rights tied to Kering fashion labels. Asian outlet The News International reports the package covers Creed plus licensing linked to Gucci, Bottega Veneta, and Balenciaga.
“French luxury group Kering has agreed to sell its beauty business, including fragrance label Creed and long-term licensing rights for beauty products from Gucci, Bottega Veneta, and Balenciaga, to cosmetics giant L'Oreal for 4 billion euros.”
Western mainstream Le Monde adds that the transaction is structured as a strategic partnership with payment slated in the first half of 2026. Other sources specify unusual length and timing details. Mexico Business News and bestmediainfo say L’Oréal secures exclusive 50-year rights across Kering labels.
The Gucci license will start after Coty’s current agreement ends in 2028. Both sources also say the closing is expected in the first half of 2026.
Kering's Debt Reduction Strategy
Multiple sources describe the sale as new CEO Luca de Meo’s first major move to reduce Kering’s heavy debt and refocus after a brief diversification into beauty. The News International highlights balance-sheet strain, noting €9.5 billion in net debt and €6 billion in lease obligations. It also reports a €60 million operating loss and a 25% year-over-year revenue drop at Gucci.
Mexico Business News and bestmediainfo support the debt-reduction goal and report losses and underperformance in the beauty segment. Bestmediainfo dates the net debt at €9.5 billion as of June 2025. Le Monde, while not specifying losses, emphasizes that the transaction will help Kering reduce its debt, aligning with the financial-repair narrative.
L’Oréal’s Major Luxury Acquisition
For L’Oréal, sources agree this is its largest acquisition to date, aimed at expanding its luxury fragrance portfolio. Le Monde reports that Creed generates about €345 million in annual sales and highlights the Gucci beauty license valued at €1.5 billion. This positions the deal among L’Oréal’s top luxury brands such as Armani, Valentino, and Lancôme.
“The acquisition includes high-end perfume brand Creed, which generates about 345 million euros in annual sales... A significant part of the deal, valued at 1.5 billion euros, is the Gucci beauty license.”
The News International provides scale context by noting the €4 billion price exceeds L’Oréal’s $2.5 billion purchase of Aesop last year. Mexico Business News and bestmediainfo emphasize the acquisition as the largest, underscoring L’Oréal’s growth in luxury fragrances through Creed and long-term licenses linked to Kering brands.
Gucci Beauty Licensing Update
The licensing landscape around Gucci is central to recent business developments. Bestmediainfo and Mexico Business News report that L’Oréal has secured exclusive 50-year rights across Kering brands. L’Oréal will hold Gucci’s beauty license after Coty’s agreement ends in 2028.
The News International confirms Gucci is part of the license bundle but does not provide details on the duration or Coty’s role. Le Monde highlights the Gucci license’s €1.5 billion value rather than focusing on the duration or transition mechanics.
Mexico Business News uniquely adds that Kering and L’Oréal will launch a joint venture to enhance luxury client experiences. This joint venture is a structural element not mentioned by other outlets.
Market Reaction to Luxury Deal
Investor and market signals diverge in depth across coverage. bestmediainfo reports immediate market reaction with Kering shares up 4.8% and L’Oréal up 1.2% following the announcement, while other sources omit share-price moves.
“Following the announcement, Kering’s shares rose 4.8%, and L’Oréal’s gained 1.2%.”
Le Monde stresses the CEOs’ role—“designed by L’Oréal CEO Nicolas Hieronimus and Kering CEO Luca de Meo”—and positions the deal within a booming luxury perfume market. The News International and Mexico Business News foreground debt-relief and portfolio refocus, including Kering’s prior €3.5 billion Creed purchase (2023) and the expectation that the transaction closes in the first half of 2026.
