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Debt-laden French luxury conglomerate Kering has agreed to sell its beauty division — including its renowned perfume brand Creed — to cosmetics giant L’Oréal in a deal valued at $4.6 billion, both companies announced on Sunday.
The agreement also grants L’Oréal 50-year exclusive licences to create and distribute beauty products under Kering’s top fashion houses — Gucci, Bottega Veneta, and Balenciaga.
In a joint statement, the two firms said they were entering a “long-term strategic partnership in luxury beauty and wellness.”
The transaction, valued at four billion euros, remains subject to regulatory approval, with completion expected in the first half of 2026.
“With Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market,” said L’Oréal’s chief executive, Nicolas Hieronimus.
The exclusive licences will commence once Kering’s current agreement with American beauty firm Coty expires in 2028.
The announcement comes roughly a month after Luca de Meo assumed his new role as Kering’s chief executive. He faces the challenge of reducing the group’s debt, currently estimated at 9.5 billion euros.
In July, Kering reported a 46 per cent decline in net profit for the first half of the year, down to 474 million euros, alongside a 16 per cent fall in revenue to €7.6 billion.
Describing the transaction as a “decisive step for Kering,” De Meo said the deal would help strengthen the company’s financial position and refocus its strategic priorities.
