US EditionKering nears sale of beauty unit to L'Oreal, sources say
Kering aims to reduce €9.5 billion net debt by selling its 2023-launched beauty division to L’Oréal, which gains fragrance brand Creed and licenses for Gucci and other luxury labels.
- On Oct 19, Kering said it would sell its beauty unit to L'Oréal for 4 billion euros in a joint press release dated 20251019.
- Facing €9.5 billion in net debt, Kering moved to cut leverage after Gucci posted a €60 million operating loss and revenue fell 25% year on year.
- Under the deal, L'Oréal will take ownership of Creed and brand licences, including 50-year exclusive rights for Gucci, Bottega Veneta, and Balenciaga, with closing expected in the first half of 2026.
- As part of the transaction, governance and revenue-sharing mechanisms were defined, with a strategic committee established and L'Oréal agreeing to pay royalties to Kering.
- Beyond the sale, the companies will explore wellness and longevity ventures, planning a 50/50 joint venture while Creed joins L'Oréal Luxe after 41.18 billion euros in 2023 sales.
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Kering Sells Beauty Arm to L'Oréal in €4 Billion Deal — CEO Luca de Meo Refocuses on Fashion, Cuts Debt
Kering sells its beauty division to L'Oréal for €4 billion in CEO Luca de Meo's first major move to cut debt and refocus on core fashion brands Gucci, Bottega Veneta and Balenciaga.
French businessman François-Henri Pinault, the world's number three luxury firm, is no longer seeing its sales decline, in contrast to its debt.
For an amount of €4 billion, the luxury group owned by the Pinault family sells Kering Beauty, and in particular the Creed perfumes, to the global cosmetics giant and promises it the Gucci license in 2028.
Kering will sell its beauty division to L-Oréal for €4 billion. The deal includes the Creed brand and long-term licenses on Gucci, Bottega Veneta and Balenciaga. A strategic operation planned for 2026, aimed at rehabilitating the French luxury group.
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