An expansive new strategic partnership deal between luxury group Kering and L’Oréal brings together two powerhouses in their respective industries.
The agreement announced Sunday includes: the rights to sell Kering Beauté, including luxury fragrance brand Creed, to L’Oréal; 50-year beauty and fragrance licensing of certain Kering brands for L’Oréal; and a 50/50 joint venture to explore opportunities in wellness and longevity.
Specifically, L’Oréal will be able to create, develop and distribute fragrance and beauty products for Gucci (following the end of Kering’s license with Coty), Bottega Veneta and Balenciaga. Additionally, a strategic committee will be developed for coordination between Kering and L’Oréal.
L’Oréal will pay 4 billion euros (about $4.66 billion) for the deal and will pay royalties to Kering for the licenses. The transaction is expected to close in the first half of 2026 and is subject to regulatory approvals.
The new deal expands on L’Oréal’s 2008 acquisition of Yves Saint Laurent Beauté from Kering.
“This strategic alliance marks a decisive step for Kering,” Kering CEO Luca de Meo said in a statement. “Joining forces with the global leader in beauty, we will accelerate the development of fragrance and cosmetics for our major Houses, allowing them to achieve scale in this category and unlock their immense long-term potential, as did Yves Saint Laurent Beauté under L’Oréal’s stewardship.”
Creed will join the L’Oréal Luxe brand portfolio, which also contains Aesop, Armani, Valentino, Maison Margiela Fragrances, Prada, Miu Miu and more.
L’Oréal Groupe’s CEO Nicolas Hieronimus noted in a statement that Kering houses Gucci, Bottega Veneta and Balenciaga have “enormous potential for growth.”