L’Oréal Expected To Acquire Kering Beauty for $4.6 Billion USD

Summary

• L’Oréal is acquiring Kering’s entire beauty portfolio for approximately $4.6 billion USD (€4 billion EUR)
• The deal includes the high-end fragrance house Creed and 50-year exclusive licenses for Gucci, Bottega Veneta, and Balenciaga beauty products
• The move allows Kering to reduce debt and refocus on its core fashion business, while strengthening L’Oréal’s luxury beauty market dominance

In a landmark transaction set to reshape the luxury beauty landscape, L’Oréal has struck a deal to acquire Kering’s entire beauty portfolio for approximately $4.6 billion USD (€4 billion EUR). The binding agreement not only involves the sale of Kering’s beauty unit but also forges a long-term strategic alliance between the two French giants in the luxury and wellness sectors.

The core of the deal is L’Oréal’s acquisition of the high-end fragrance house Creed, which immediately establishes L’Oréal as a leading player in the fast-growing niche fragrance market. Furthermore, L’Oréal secures highly valuable 50-year exclusive licenses for the creation, development, and distribution of fragrance and beauty products for Kering’s flagship luxury brands, including Gucci, Bottega Veneta and Balenciaga. The move comes as Kering faces the hardships of the economic downturn in the luxury industry. Amongst the major conglomerate in the industry, Kering has been one of the hardest to be hit and the sale would allow for more free flowing capital to focus on fashion.

For Kering, this strategic move—one of the first major actions under new CEO Luca de Meo—is a decisive step toward reducing the luxury group’s substantial debt and refocusing resources on its core fashion business. Luca de Meo said in a statement, “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. This partnership allows us to focus on what defines us best: the creative power and desirability of our houses.” L’Oréal CEO Nicolas Hieronimus called the acquisition a move that will “further solidify our position as the world’s #1 luxury beauty company.” The all-cash transaction, which is subject to regulatory approval, is expected to close in the first half of 2026.

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