Monday, October 20, 2025 - Debt-laden French luxury group Kering is selling its beauty products division, including its flagship perfume brand Creed, to cosmetics giant L’Oreal in a deal worth $4.6 billion, both companies announced on Sunday.
The agreement also grants L’Oreal 50-year exclusive licenses
to develop and distribute beauty products under Kering’s high-end fashion
labels, including Gucci, Bottega Veneta, and Balenciaga.
In a joint statement, Kering and L’Oreal said they were
“entering a long-term strategic partnership in luxury beauty and wellness.” The
deal, valued at four billion euros overall, is subject to regulatory approval,
with payment expected in the first half of 2026.
“Through Creed, we will establish ourselves as one of the
leading players in the fast-growing niche fragrance market,” said L’Oreal chief
executive Nicolas Hieronimus in the statement.
The exclusive licenses will take effect once Kering’s
current licensing deal with the American cosmetics company Coty expires in
2028.
The announcement comes just one month after Kering’s new
CEO, Luca de Meo, assumed leadership of the group with a mandate to reduce its
debt, which currently stands at around 9.5 billion euros.
In July, Kering reported a 46 percent drop in net profit for
the first half of the year, falling to 474 million euros, while revenue plunged
16 percent to €7.6 billion.
De Meo described the sale as a “decisive step for Kering,”
signaling a strategic shift aimed at stabilizing the company’s finances and
refocusing on its core fashion business.
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