L’Oréal is set to acquire Kering’s entire beauty portfolio for approximately $4.6 billion USD (€4 billion EUR), marking a landmark deal in the luxury beauty sector. The acquisition includes high-end fragrance house Creed and 50-year exclusive licenses to develop and distribute fragrance and beauty products for Kering’s flagship brands, including Gucci, Bottega Veneta, and Balenciaga.
This move not only strengthens L’Oréal’s position in the fast-growing luxury fragrance market but also deepens its strategic relationship with Kering, creating long-term collaboration opportunities in the luxury and wellness sectors.
Strategic Focus for Kering
For Kering, the sale represents a major step in reducing debt and refocusing on its core fashion business. New CEO Luca de Meo emphasized that partnering with a global beauty leader like L’Oréal allows Kering to unlock the long-term potential of its Houses in fragrance and cosmetics. He stated:
“Joining forces with L’Oréal, we will accelerate the development of fragrance and cosmetics for our major Houses, allowing them to achieve scale and focus on what defines us best: the creative power and desirability of our brands.”
The move comes amid ongoing economic challenges in the luxury sector, with Kering seeking to free capital for fashion initiatives.
L’Oréal Strengthens Luxury Beauty Leadership
L’Oréal CEO Nicolas Hieronimus hailed the acquisition as a step to solidify the company’s position as the world’s #1 luxury beauty group. The all-cash transaction, pending regulatory approval, is expected to close in the first half of 2026. By integrating Kering’s fragrance and beauty assets, L’Oréal not only expands its portfolio but also gains access to long-term exclusive rights, ensuring sustained market influence and growth in the luxury segment.