Debt-ridden French luxury group Kering is selling its beauty division, including its flagship perfume brand Creed to cosmetics giant L’Oréal in a €4 billion ($4.6 billion) deal, both companies announced on Sunday.
As part of the agreement, L’Oréal will also receive 50-year exclusive licenses to develop and distribute beauty products under Kering’s major fashion houses, including Gucci, Bottega Veneta, and Balenciaga. The licenses will take effect after the expiration of Kering’s current agreement with U.S. cosmetics firm Coty in 2028.
In a joint statement, Kering and L’Oréal described the deal as a “long-term strategic partnership in luxury beauty and wellness.” The transaction is subject to regulatory approvals and is expected to close in the first half of 2026.
“Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market,” said L’Oréal CEO Nicolas Hieronimus.
The move comes just weeks after Kering’s new CEO, Luca de Meo, took charge with a mandate to streamline operations and reduce the company’s mounting debt, which currently stands at around €9.5 billion.
In July, Kering reported a 46% drop in net profit to €474 million for the first half of the year, alongside a 16% decline in revenue to €7.6 billion.
De Meo hailed the deal as a “decisive step” toward stabilizing the group’s financial health and repositioning its luxury brands in the global beauty market.
AFP
