L’Oréal to Acquire Kering’s Beauty Arm for €4 Billion, Gaining 50-Year Brand Licenses

Overview

• The companies announced a long-term strategic alliance with an agreed €4 billion sale, targeting completion in the first half of 2026 subject to approvals.
• L’Oréal will take over the Creed fragrance house and obtain exclusive 50-year rights to develop fragrances and beauty for Kering maisons, with a 50-year Gucci license starting after Coty’s contract ends in 2028.
• Kering frames the divestment as a pivot to reduce debt and focus on fashion after its beauty unit, launched in 2023 around the Creed deal, posted a €60 million operating loss in the first half of the year.
• L’Oréal calls it the largest acquisition in its history, exceeding the 2023 Aesop purchase, and CEO Nicolas Hieronimus indicates the group can still pursue a potential Armani transaction.
• Shares rose after the announcement, with Kering up about 4.7% and L’Oréal up roughly 1.4%, and the partners also outlined a joint-venture element aimed at luxury experiences and services.