French luxury goods company Kering said Sunday it will sell its beauty division to L’Oréal for 4 billion euros ($4.66 billion).
Under the deal, Clichy, France-based L’Oreal will acquire high-end fragrance company House of Creed, as well as licenses to create beauty and fragrance products for Kering brands such as Gucci, Bottega Veneta and Balenciaga.
The companies said they will establish a strategic committee to ensure coordination between the Kering and L’Oréal brands. Kering and L’Oréal said they are also exploring joint business opportunities in the wellness and longevity market, combining L’Oréal’s innovation with Kering’s deep understanding of luxury customers.
The agreement has some precedence. L’Oréal acquired the beauty license for the Yves Saint Laurent brand from Kering in 2008.
Luca de Meo, chief executive of Paris-based Kering, said the deal combines L’Oreal’s expertise with Kering’s luxury reach.
“By joining forces with the global beauty leader, we will accelerate the development of fragrances and cosmetics for our flagship houses, allowing them to achieve scale in this category and unlock its immense long-term potential, as Yves Saint Laurent Beauté did under the leadership of L’Oréal,” de Meo said in a statement.
Nicolas Hieronimus, chief executive of L’Oreal Groupe, said Creed is one of the fastest-growing players in the fragrance niche market, while Gucci, Bottega Veneta and Balenciaga are “exceptional haute couture brands with enormous growth potential.”
The all-cash deal is expected to close in the first half of 2026. L’Oréal will also pay royalties to Kering for the use of its licensed brands.