Overview
- The agreement transfers the Creed fragrance house to L'Oréal and grants 50-year exclusive perfume and beauty licences for Gucci, Bottega Veneta and Balenciaga, with closing planned in the first half of 2026.
- Bloomberg estimates the Gucci licence accounts for about €1.5 billion of the total value, and L'Oréal's Gucci rights would begin after Coty's current licence ends, which analysts say is in 2028.
- Creed generates roughly €345 million in annual sales, and L'Oréal chief executive Nicolas Hieronimus said the brand could grow to €1 billion in revenue.
- Kering expects cash proceeds to help deleverage and will receive royalties on the licensed brands, while the partners also plan a 50/50 joint venture focused on brand experiences and services.
- L'Oréal reported third‑quarter sales of €10.3 billion, up 0.5% reported and 4.2% like‑for‑like, as analysts at Oddo BHF said the transaction cements its leadership in global prestige fragrance.