L’Oréal seals €4bn deal for Kering’s entire luxury beauty portfolio

Published on 20/10/2025 - 12:49 GMT+2

L’Oréal and Kering announced a strategical confederation connected Sunday that will spot nan French cosmetics elephantine get Kering’s premium beauty business for €4 billion.

The woody intends that L'Oréal will participate into 50-year licensing arrangements for immoderate of Kering’s astir iconic brands, specifically Gucci, Bottega Veneta, and Balenciaga.

L'Oréal will besides return complete Kering's fragrance statement Creed.

“Joining forces pinch nan world leader successful beauty, we will accelerate nan improvement of fragrances and cosmetics for our awesome Houses, allowing them to execute standard successful this class and unlock their immense semipermanent potential,” said Kering’s recently appointed main executive Luca de Meo.

“Together, we will besides task into caller frontiers of wellness, combining nan unrivalled expertise of L’Oréal pinch our unsocial luxury reach,” Meo added.

Kering is simply a Paris-based luxury group champion known for nan high-fashion and leather-goods houses nether its wing, including Gucci, Saint Laurent, Bottega Veneta, Balenciaga and Alexander McQueen.

Through these brands, on pinch Kering Eyewear, nan institution generates astir of its €17.2bn successful yearly gross from handbags, footwear, ready-to-wear and accessories.

Controlled by nan Pinault family holding institution Artémis, Kering has been nether unit to revive maturation astatine Gucci, its largest label.

L’Oréal, by contrast, is simply a pure-play elephantine — focused exclusively connected beauty products — pinch €43.48bn successful 2024 sales.

The French group sells cosmetics, skincare, haircare, and fragrances crossed 4 main divisions — Consumer Products, L’Oréal Luxe, Professional Products and Dermatological Beauty. With immense world accumulation and distribution networks, L’Oréal operates galore brands extremity to extremity while besides managing luxury beauty licences for manner houses.

The woody announced connected Sunday cements L’Oréal’s power successful luxury beauty while allowing Kering to trim indebtedness and refocus connected its halfway businesses. Kering's indebtedness came to €9.5bn astatine nan extremity of June, connected apical of €6bn successful semipermanent lease liabilities.

“I americium delighted to forge this semipermanent strategical confederation pinch 1 of nan world’s astir prestigious, imaginative and visionary luxury groups. This business will further solidify our position arsenic nan world’s #1 luxury beauty institution and let america to research caller avenues successful wellness together," said L’Oréal’s main executive Nicolas Hieronimus.

"Through Creed, we will found ourselves arsenic 1 of nan starring players successful nan fast-growing niche fragrance market. Gucci, Bottega Veneta and Balenciaga are each exceptional couture brands pinch tremendous imaginable for growth.”

What makes nan statement peculiarly noteworthy is its dual structure. Not only does L’Oréal return stewardship of beauty and fragrance improvement for Kering’s luxury brands, but nan 2 groups will besides found an exclusive 50/50 associated task to research business opportunities successful wellness and longevity — areas progressively intersecting pinch high-end beauty.