Kering Sells Beauty Division to L’Oreal for $4.7 Billion in Strategic Luxury Deal

Kering is selling its entire beauty division to L’Oréal for 4 billion euros, approximately $4.6 to $4.7 billion.

“The logo of French luxury group Kering is pictured in Paris on Sept”

The Korea Times

The deal includes the high-end perfume house Creed and grants L’Oréal 50-year exclusive licenses to develop and distribute beauty and fragrance products for Gucci, Bottega Veneta, and Balenciaga.

The Korea Times

The agreement is an all-cash transaction expected to close in the first half of 2026.

The Gucci license will transfer after Coty’s current agreement expires in 2028.

Several sources note that the deal is framed within a broader strategic partnership.

Together, these details indicate a long-term reshaping of luxury beauty relationships between the two French groups.

Strategically, Kering’s new CEO Luca de Meo is using the sale to reduce debt and refocus on core fashion after a difficult period marked by Gucci softness and losses at Kering Beauty.

Kering Beauty was formed around the 2023 purchase of Creed for €3.5 billion.

SSBCrack

Market-focused outlets report the beauty unit posted a €60 million operating loss in the first half.

De Meo has paused other expansion moves like a potential Valentino deal while reviewing asset disposals.

Some Asian coverage adds that an eyewear sale is possible.

For L’Oréal, this is described as its largest acquisition to date, boosting its position in luxury and niche fragrance through Creed.

The partnership’s structure is described differently across outlets.

“20 October,2025 07:06 PM IST |  Mumbai  |mid-day online correspondent Image for representational purpose only”

Mid-day

Some Western mainstream and local Western sources say the deal includes creating a 50/50 joint venture to combine capabilities.

Other reports emphasize a strategic committee and collaboration in wellness and longevity.

In parallel, several sources stress that L’Oréal already holds Yves Saint Laurent’s beauty license since 2008.

This history shapes how the broader brand ecosystem around Gucci, Bottega Veneta, and Balenciaga will be managed.

Licensing and timing are central to the agreement between L’Oréal and Kering.

L’Oréal receives 50-year exclusive rights related to Gucci, Bottega Veneta, and Balenciaga.

Asianet Newsable

Gucci’s beauty license will begin only after Coty’s current agreement ends in 2028.

The transaction is cash-based and includes L’Oréal paying royalties to Kering for the licensed brands.

Some local financial reports describe the arrangement as a 50-year strategic partnership and joint venture.

This description highlights the long-duration and co-governed nature of the collaboration.

Markets reacted positively to Kering’s shift towards reducing debt.

“French luxury goods company Kering said Sunday it is selling its beauty division to L’Oreal for 4 billion euros ($4”

Moneycontrol

Reports indicate a rise in Kering shares ranging from approximately 3.9% to over 5% following the news.

Moneycontrol

Meanwhile, Coty’s shares declined as it is expected to lose the Gucci license after 2028.

Some analyses place the deal within L’Oréal’s broader acquisition activities planned for 2025.

They argue that acquiring Kering Beauty complements recent purchases and highlights an aggressive luxury market expansion strategy.