Kering sells beauty unit to L’Oréal for USD 4.66B in strategic shift
As part of the deal, L’Oréal will acquire Creed, Kering’s high-end fragrance brand, along with long-term rights to develop beauty and fragrance products for fashion houses Gucci, Balenciaga, and Bottega Veneta.
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On October 19, Kering, the parent company of Gucci, announced the sale of its beauty division to L’Oréal for $4.66 billion, marking a major strategic shift under new CEO Luca De Meo, according to Reuters. The move aims to reduce debt and refocus the group on its core fashion business.
As part of the deal, L’Oréal will acquire Creed, Kering’s high-end fragrance brand, along with long-term rights to develop beauty and fragrance products for fashion houses Gucci, Balenciaga, and Bottega Veneta.
Currently, Coty holds the license for Gucci fragrances, but that agreement is expected to expire by 2028, after which L’Oréal will take over under a new 50-year license agreement.
Kering entered the beauty space in 2023 with its €3.5 billion acquisition of Creed, seeking to diversify and reduce dependency on Gucci, which generates most of its profits. However, the business has struggled, posting a €60 million operating loss in H1 2025.
In June, Luca De Meo, former CEO of Renault Group, stepped down to pursue new opportunities and was later appointed CEO of Kering, succeeding François-Henri Pinault, whose family has led the French luxury group for nearly two decades.
