L’Oréal eyes stake in Armani amid USD 4.66 bn Kering beauty acquisition
Just days earlier, on October 19, Kering—the parent company of Gucci—revealed it would sell its beauty division to L’Oréal, marking a significant strategic pivot under new CEO Luca De Meo, as reported by Reuters. The deal is aimed at reducing debt and refocusing the group on its core luxury fashion business.
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French multinational personal care giant L’Oréal announced on October 21 its interest in acquiring a stake in Italian fashion and beauty brand Armani, even as it moves forward with a $4.66 billion acquisition of Kering’s beauty division, according to media reports.
Just days earlier, on October 19, Kering—the parent company of Gucci—revealed it would sell its beauty division to L’Oréal, marking a significant strategic pivot under new CEO Luca De Meo, as reported by Reuters. The deal is aimed at reducing debt and refocusing the group on its core luxury fashion business.
As part of the acquisition, L’Oréal will take over high-end fragrance brand Creed, and secure long-term rights to develop beauty and fragrance lines for top fashion houses including Gucci, Balenciaga, and Bottega Veneta.
Currently, Coty holds the fragrance license for Gucci, but that agreement is expected to expire by 2028. Afterward, L’Oréal will assume the rights under a new 50-year license agreement.
Kering had entered the beauty sector in 2023 with its €3.5 billion acquisition of Creed, aiming to diversify revenue and reduce reliance on Gucci, which remains its primary profit driver. However, the venture has faced challenges, posting a €60 million operating loss in the first half of 2025.
