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L’Oréal Acquires Kering Beauty Division

A 4 billion euros deal.

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By: TOM BRANNA

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French luxury group Kering sold its beauty division to L’Oréal for about €4 billion ($4.6 billion).

When the acquisition is complete L’Oréal gets fragrance brand Creed as well as the rights to develop beauty products tied to Kering’s fashion labels. Kering’s fashion business includes names like Bottega Veneta, Balenciaga and McQueen. The acquisition includes a 50-year exclusive license for Bottega Veneta and Balenciaga, which will start at the close of the transaction, which is expected to take place in the first half of 2026.

“I am delighted to forge this long-term strategic alliance with one of the world’s most prestigious, creative and visionary luxury groups,” said Nicolas Hieronimus, CEO of L’Oréal Groupe. “This partnership will further solidify our position as the world’s [number one] luxury beauty company and allow us to explore new avenues in wellness together. The addition of these extraordinary brands perfectly complements our existing portfolio and significantly expands our reach into new, dynamic segments of luxury beauty.”

Kering launched its beauty division in 2023 following its purchase of Creed, a prestige fragrance brand.

What’s Next for Gucci?

The binding agreement gives L’Oréal the rights to enter into a 50-year exclusive license for the creation, development and distribution of fragrance and beauty products for Gucci, starting after the expiration in 2028 of Kering’s current license with Coty Inc. for that business.

Some analysts applauded the move.

“Overall, this is a defining deal for L’Oréal — their biggest ever — to strengthen its leading position in global fragrances and in niche — beyond its minority stake in Amouage,” wrote Céline Pannuti, head of European staples and beverage research at J.P. Morgan, in a note.

A Decisive Step for Kering

The acquisition will be led by a strategic committee to ensure coordination between the brands.

“This strategic alliance marks a decisive step for Kering,” said Luca de Meo, CEO of Kering.

“Joining forces with the global leader in beauty, we will accelerate the development of fragrance and cosmetics for our major houses, allowing them to achieve scale in this category and unlock their immense long-term potential, as did Yves Saint Laurent Beauté under L’Oréal’s stewardship.

“Together, we will also venture into new frontiers of wellness, combining the unrivaled expertise of L’Oréal with our unique luxury reach.”

For L’Oréal, L’Oréal the acquisition sharpens its focus on the niche fragrance market.

“Gucci, Bottega Veneta and Balenciaga are all exceptional couture brands with enormous potential for growth,” said Hieronimus.

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