Debt-laden French luxury group Kering is selling its beauty products business including its leading perfume brand Creed to cosmetics giant L’Oreal in a deal worth $4.6 billion, the companies said Sunday.
The deal also gives L’Oreal 50-year exclusive licenses to develop and distribute products under Kering’s fashion labels Gucci, Bottega Veneta and Balenciaga.
Kering and the French grooming giant said in a joint statement they were “entering a long-term strategic partnership in luxury beauty and wellness”.
They valued the deal at four billion euros overall, subject to regulation, with payment expected in the first half of 2026.
“Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market,” said L’Oreal chief executive Nicolas Hieronimus in the statement.
The 50-year exclusive licenses will take effect after the current licence with American company Coty expires in 2028.
The announcement comes around one month after Kering’s new CEO Luca de Meo took the helm, tasked with reducing the group’s debt, which stands at around 9.5 billion euros.
In July, Kering reported a 46 percent drop in net profit in the first half of the year to 474 million euros, and a 16 percent plunge in revenue to €7.6 billion.
De Meo called the deal a “decisive step for Kering”.
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© Agence France-Presse
