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Kering and L’Oréal Announce Major Beauty Division Deal

L’Oréal is set to expand its luxury portfolio through the acquisition of Kering Beauté and new long-term brand licenses.

Kering and L’Oréal Beauty Division Deal
© Kering

Kering and L’Oréal announced that they are entering a long-term strategic partnership in luxury beauty and wellness. The agreement includes several key components: L’Oréal will acquire the historic fragrance house Creed, gain 50-year licenses to produce beauty and fragrance lines for Gucci, Bottega Veneta, and Balenciaga, and collaborate with Kering on a new wellness venture focused on longevity and holistic care.

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The partnership builds on the long history between the two companies. L’Oréal already manages Yves Saint Laurent Beauté, a successful beauty line under Kering’s portfolio, and this new alliance deepens that connection.

As part of the agreement, Kering has the right to sell Kering Beauté, which includes Creed, to L’Oréal. Founded in 1760, Creed is renowned for its craftsmanship and use of rare natural ingredients. Once integrated into L’Oréal’s luxury division, Creed is expected to expand its international presence in both the men’s and women’s fragrance markets.

In addition to acquiring Creed, L’Oréal will gain long-term licenses to create and distribute beauty and fragrance products for Kering’s leading brands. The Gucci license will begin once the existing agreement with Coty concludes, while the licenses for Bottega Veneta and Balenciaga will take effect after the transaction closes. To oversee the collaboration, both companies will establish a joint strategic committee to coordinate the partnership and monitor brand development.

© L’Oréal

Beyond fragrance and beauty, the partnership includes plans for a 50/50 joint venture focused on wellness and longevity. The initiative will bring together L’Oréal’s expertise in research and innovation with Kering’s knowledge of luxury clients to develop new experiences aligned with the growing demand for wellbeing.

Kering CEO Luca de Meo said the alliance marks a decisive step for the group, allowing its fashion houses to expand their fragrance and cosmetics lines while entering new categories such as wellness. L’Oréal CEO Nicolas Hieronimus said the agreement strengthens L’Oréal’s leadership in luxury beauty and extends its reach in niche fragrance through Creed, while opening new opportunities with Gucci, Bottega Veneta, and Balenciaga.

The €4 billion deal is scheduled to close in the first half of 2026, pending regulatory approval and compliance with French labor law. L’Oréal will complete the transaction in cash and continue to pay royalties to Kering for the use of its licensed brand names. Once finalized, the partnership is expected to redefine the relationship between luxury, beauty, and wellness, setting a new pace for both companies in the global market.

Written by Jana Kostic

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