Building on the success of Yves Saint Laurent Beaute, this collaboration further strengthens the long history of collaboration between two global leaders with complementary strengths – Kering’s iconic luxury brands and L’Oréal’s world-class expertise in beauty – to accelerate growth and unlock considerable value in high-potential categories.
Under the terms of this agreement, Kering has the right to sell Kering Beauty, including the House of Creed, to L’Oréal. A true heritage name in haute perfumery, Creed is one of the leading high-end luxury fragrance houses, celebrated for its craftsmanship and mastery of rare natural materials. As part of L’Oréal Luxe, Creed will be Best positioned to further accelerate its global growth in both the men’s and women’s markets.
Kering and L’Oreal have entered into a €4 billion strategic partnership in the luxury beauty, fragrance and wellness sectors. The deal includes the acquisition of Creed by L’Oréal and a 50-year exclusive license for the Gucci, Bottega Veneta and Baleniaga fragrances. The goal of the alliance is to accelerate global growth and explore new frontiers in well-being and longevity.
The partnership includes the right for Gucci to enter into a 50-year exclusive license to manufacture, develop and distribute fragrances and beauty products, which will begin after the expiration of the current license with Coty, and respect Kering Group’s obligations in accordance with the existing license agreement.
Upon closing of the announced transaction, Kering will also grant L’Oréal a 50-year exclusive license to manufacture, develop and distribute fragrance and beauty products for Bottega Veneta and Baleniaga.
A strategic committee will be established to ensure coordination between Kering brands and L’Oreal and monitor the progress of our partnership.
The value of the agreement, including the sale of Creed and the establishment of these 50-year licenses on these prestigious houses of Kering, is valued at €4 billion, payable in cash upon closing, expected in the first half of 2026. L’Oréal will also pay royalties to Kering for the use of its licensed brands.
Beyond beauty, Kering and L’Oréal are working together to explore business opportunities at the intersection of luxury, wellness and longevity. This exclusive partnership, as a planned 50/50 joint venture, will combine L’Oréal’s innovation capabilities with Kering’s deep understanding of the luxury consumer to create cutting-edge experiences and services.
,“This strategic alliance is a decisive step forward for Kering.” announced Luca De Meo, CEO of Kering, “By joining forces with the global leader in beauty, we will accelerate the development of fragrances and cosmetics for our flagship houses, allowing them to achieve scale in this category and unlock their immense long-term potential, just as L’Oréal led Yves Saint Laurent Beauty. Together, we will also venture into new areas of wellness, combining L’Oréal’s unmatched expertise with our unique luxury reach Will do. This partnership allows us to focus on that. “What defines us Best: the creative power and desirability of our houses.”
“I am delighted to form this long-term strategic alliance with one of the world’s most prestigious, creative and visionary luxury groups. This partnership will further strengthen our position as the world’s #1 luxury beauty company and allow us to explore new paths in wellness together.” Said Nicolas Hieronymus, CEO L’Oréal Group, “The addition of these exceptional brands perfectly complements our existing portfolio and significantly extends our reach into new, dynamic areas of luxury beauty. Through Creed, we will position ourselves as one of the leading players in the rapidly growing niche fragrance market. Gucci, Bottega Veneta and Baleniaga are all exceptional couture brands with huge growth potential.”
The agreement is subject to Kering’s obligations under French employment law, including granting Kering the right to sell Kering Beauty to L’Oréal and exclusivity to L’Oréal.
Fibre2Fashion News Desk (RKS)
