US EditionGucci owner Kering sells beauty unit to L'Oreal for $4.7 billion as de Meo trims debt
Kering sells its beauty division to L'Oreal to reduce 9.5 billion euros net debt and refocus on fashion; deal includes House of Creed and licenses for Gucci and Balenciaga.
- On Sunday, Kering agreed to sell its beauty division to L'Oreal for 4 billion euros, including Creed and licences for Gucci, Bottega Veneta, and Balenciaga, with the deal closing in early 2026.
- Facing heavy borrowing, Kering had reported 9.5 billion euro net debt and a 16% sales drop in H1 2025, while new CEO Luca de Meo moved quickly to reshape strategy.
- Struggling to ramp up, the beauty arm reported a $6000 million operating loss for H1, while Kering built the unit by acquiring Creed in 2023.
- Under the deal, L'Oreal will pay royalties to Kering and the firms will establish a strategic committee to coordinate efforts, which Kering said will accelerate fragrance and cosmetics development, de Meo highlighted.
- The 50-year licence will commence when Coty's current Gucci licence expires, believed to be in 2028, and Nicolas Hieronimus said the deal expands L'Oreal's luxury reach amid Armani approaches this year.
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L'Oreal deepens its scented empire
Paris The fashion and beauty industries are poised for a shake-up after luxury group Kering agreed to sell its beauty business to French cosmetics giant L'Oréal for 4 billion ($4.66 billion) – the biggest acquisition in L'Oréal's history. This also marks a strategic retreat by Kering, which is seeking to cut debt and refocus on its core fashion labels. The sale includes the prestigious perfume house Creed and long-term fragrance and beauty lice…
Owned by the Pinault family, the group is plagued by its debt and a decline in sales of its flagship brand Gucci. It will sell its beauty products to the world number 1 cosmetics, L的Oréal, for 4 billion euros.
L'Oreal agrees to buy Kering beauty division in a $4.7-billion deal
Kering SA agreed to sell its beauty division to L’Oreal SA in a $4.7 billion-deal, with new Chief Executive Officer Luca de Meo changing course in a bid to turn around the French luxury giant’s fortunes.
Tectonic change in the world of beauty, the most juicy sector since luxury fashion slowed down its sales. The business is concentrated with the announcement today that the L’Oréal Group will be made with Kering Beauté, the perfume and cosmetics division of the Kering conglomerate. In a joint statement both companies have explained that the agreement, closed for 4 billion euros, will conclude at the beginning of 2026 and will last for 50 years. D…
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