Particle.news
Download on the App Store
5 ARTICLES
·
4h ago

Kering Sells Beauty Unit to L’Oréal for €4 Billion, Sets 50-Year Licensing Deal

The move prioritizes deleveraging under Luca de Meo following a Gucci slowdown.

Image
Image
Image
Neuer Chef, neuer Kurs: Der verschuldete französische Luxusgüterkonzern Kering verkauft seine Kosmetiksparte an die Konkurrenz, um sich zu sanieren. Für vier Milliarden Euro geht die Sparte an den französischen Kosmetikkonzern L'Oréal.

Overview

  • Kering and L’Oréal announced a binding agreement for the sale of Kering’s beauty division for about €4 billion alongside a long-term strategic alliance.
  • The pact grants L’Oréal paid licences to develop and market cosmetics and perfumes for Gucci, Bottega Veneta and Balenciaga for 50 years.
  • Completion is targeted for the first half of 2026 subject to customary conditions and regulatory review.
  • Kering said proceeds will be used to reduce net debt of roughly €9.5 billion, and its shares rose more than 5 percent after the announcement.
  • The transaction includes Creed, acquired by Kering in 2023 for €3.5 billion, and Gucci’s beauty rights will move to L’Oréal after the brand’s existing arrangement with Coty ends.