Key Takeaways
- L’Oréal to acquire Kering Beauté for €4 billion ($4.66B).
- Includes Creed and beauty licenses for Gucci, Bottega Veneta, and Balenciaga.
- 50-year exclusive licenses for each brand’s beauty and fragrance lines.
- Joint venture planned to explore wellness and longevity markets.
- Deal expected to close in first half of 2026.
In a major realignment of the global luxury beauty landscape, L’Oréal Groupe has reached an agreement to acquire Kering Beauté—including the House of Creed and long-term beauty licenses for Gucci, Bottega Veneta, and Balenciaga—for €4 billion ($4.66 billion) in cash.
The deal establishes a 50-year exclusive licensing agreement allowing L’Oréal to develop and distribute fragrances and cosmetics for Kering’s fashion houses, beginning as current contracts expire. Gucci’s beauty line, currently under Coty, is expected to transition in 2028.
Beyond the acquisition, the two French powerhouses are launching a 50/50 joint venture focused on wellness and longevity, combining L’Oréal’s research and innovation with Kering’s deep understanding of the luxury client.
Kering CEO Luca de Meo described the partnership as “a decisive step” that will accelerate growth for the group’s houses while enabling Kering to focus on its creative and fashion core. The collaboration follows a precedent set by Yves Saint Laurent Beauté, which flourished under L’Oréal’s leadership after its transfer from Kering in 2008.
For L’Oréal, the move solidifies its position as the world’s leading luxury beauty player, expanding its reach in high-end fragrance and couture-linked cosmetics. CEO Nicolas Hieronimus called Creed “one of the fastest-growing names in niche perfumery” and underscored the “enormous potential” of Gucci, Bottega Veneta, and Balenciaga in the luxury beauty space.
The transaction, valued at €4 billion and subject to regulatory approvals, is expected to close in the first half of 2026. L’Oréal will also pay royalties to Kering for the ongoing use of its brand licenses.
