Overview
- L’Oréal will acquire Kering Beauté, including the House of Creed, for about €4 billion in cash and obtain 50-year exclusive beauty licences for Gucci, Bottega Veneta and Balenciaga.
- The Gucci licence will commence after Coty’s current agreement ends, expected around 2028, while the Bottega Veneta and Balenciaga licences take effect at closing.
- Completion is targeted for the first half of 2026 subject to regulatory approvals, with a strategic committee to oversee coordination and ongoing royalties payable to Kering.
- The partners will launch a 50/50 joint venture to develop offerings in luxury wellness and longevity.
- L’Oréal says the deal strengthens its leadership in luxury and niche fragrances, while analysts expect Kering to use proceeds to cut debt and refocus on fashion, increasing future pressure on Coty once Gucci transitions.