Kering and L’Oréal have announced a €4 billion agreement that will see L’Oréal acquire the House of Creed and the rights to beauty and fragrance licences of brands owned by luxury goods group Kering, including Gucci (after the current licence with Coty expires).
The deal also features an exclusive venture to explore business opportunities in the field of wellness and longevity.
Closing of the agreement is expected in the first half of 2026. L’Oréal will also pay royalties to Kering for the use of its licensed brands.
A statement said: “Building on the success of Yves Saint Laurent Beauté, this alliance further consolidates the long history of collaboration of two global leaders with complementary strengths — iconic luxury brands of Kering and the world-class expertise of L’Oréal in beauty — to accelerate growth and unlock considerable value across high-potential categories.”
Under the terms of this agreement, Kering has the right to sell Kering Beauté including the House of Creed to L’Oréal. The partners said that as part of L’Oréal Luxe, Creed will be “best positioned to accelerate even further its global development across both men’s and women’s markets”.
The partnership includes the rights to enter into a 50-year exclusive licence for the creation, development and distribution of fragrance and beauty products for Gucci, after the current licence with Coty expires, and respects the Kering group’s obligations under the existing licensing agreement.
Kering will also grant L’Oréal 50-year exclusive licenses for the creation, development and distribution of fragrance and beauty products for Bottega Veneta and Balenciaga, starting upon closing of this transaction.
A strategic committee will be established to ensure coordination between Kering brands and L’Oréal.
Beyond beauty, Kering and L’Oréal said they are joining forces to explore business opportunities across luxury, wellness and longevity.
Through a planned 50/50 joint venture, they said they will “craft cutting-edge experiences and services combining L’Oréal’s innovation capabilities with Kering’s deep understanding of luxury clients”.
Kering CEO Luca de Meo said: “This strategic alliance marks a decisive step for Kering. 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.
“Together, we will also venture into new frontiers of wellness, combining the unrivalled expertise of L’Oréal with our unique luxury reach. This partnership allows us to focus on what defines us best: the creative power and desirability of our Houses.”
L’Oréal Groupe CEO Nicolas Hieronimus said: “I am delighted to forge this long-term strategic alliance with one of the world’s most prestigious, creative and visionary luxury groups. This partnership will further solidify our position as the world’s #1 luxury beauty company and allow us to explore new avenues in wellness together.
“The addition of these extraordinary brands perfectly complements our existing portfolio and significantly expands our reach into new, dynamic segments of luxury beauty. Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market. Gucci, Bottega Veneta and Balenciaga are all exceptional couture brands with enormous potential for growth.”
The agreement contains customary terms and conditions, including regulatory approvals. The agreement is also subject to Kering’s obligations under French employment law, with the right for Kering to sell Kering Beauté to L’Oréal and an exclusivity granted to L’Oréal.
