Building on the success of Yves Saint Laurent Beauté, this alliance further cements the long history of two global leaders with complementary strengths – Kering's iconic luxury brands and L'Oréal's world-class expertise in beauty – collaborating to accelerate growth and unlock considerable value in high-potential categories.
Under the terms of this agreement, Kering has the right to sell Kering Beauté, including House of Creed, to L'Oréal. A true heritage name in fine perfumery, Creed is among the leading high-end luxury fragrance houses, renowned for its craftsmanship and mastery of rare natural ingredients. As part of L'Oréal Luxe, Creed will be best positioned to further accelerate its global development in the men's and women's markets.
Kering and L'Oréal have signed a €4 billion strategic partnership spanning luxury beauty, fragrance and wellness. The deal includes L'Oréal's acquisition of Creed and exclusive 50-year licenses for Gucci, Bottega Veneta and Balenciaga fragrances. The alliance aims to accelerate global growth and explore new frontiers in wellness and longevity.
The partnership includes the rights to enter into a 50-year exclusive license for the creation, development and distribution of fragrances and beauty products for Gucci, which will commence after the expiration of the current license with Coty and will respect the Kering group's obligations under the existing licensing agreement.
Kering will also grant L'Oréal exclusive 50-year licenses for the creation, development and distribution of fragrances and beauty products for Bottega Veneta and Balenciaga, upon closing of the announced transaction.
A strategic committee will be established to ensure coordination between the Kering and L'Oréal brands and monitor the progress of our partnership.
The deal, which includes the sale of Creed and the establishment of these 50-year licenses over these iconic Kering Houses, is valued at €4 billion, payable in cash at closing, scheduled for the first half of 2026. L'Oréal will also pay royalties to Kering for the use of its licensed brands.
Beyond beauty, Kering and L'Oréal are joining forces to explore business opportunities at the intersection of luxury, wellness and longevity. This exclusive partnership, in the form of a planned 50/50 joint venture, will create cutting-edge experiences and services that combine L'Oréal's innovation capabilities with Kering's deep understanding of luxury customers.
““This strategic alliance marks a decisive step for Kering.” declared Luca de Meo, CEO of Kering. “By joining forces with the global beauty leader, we will accelerate the development of fragrances and cosmetics for our leading houses, allowing them to achieve scale in this category and unlock its immense potential in the long term, as Yves Saint Laurent Beauté did under the leadership of L'Oréal. Together, we will also venture into new frontiers of well-being, combining L'Oréal's unrivaled expertise with our unique luxury reach. This partnership allows us to focus on what defines us best: the creative power and desirability of our Houses.”
“I am delighted to forge this long-term strategic alliance with one of the most prestigious, creative and visionary luxury groups in the world. 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.” saying Nicolas Hieronimus, CEO of the L'Oréal group. “The addition of these extraordinary brands perfectly complements our existing portfolio and significantly expands our reach into dynamic new luxury beauty segments. Through Creed, we will establish ourselves as one of the leading players in the fast-growing fragrance niche market. Gucci, Bottega Veneta and Balenciaga are exceptional high fashion brands with enormous growth potential.”
The deal is subject to Kering's obligations under French labor law, with Kering's right to sell Kering Beauté to L'Oréal and exclusivity granted to L'Oréal.
Fibre2Fashion (RKS) News Desk
