L’Oréal to acquire Kering Beauty for $4.6 billion

In a historic move set to reshape the luxury beauty landscape, L’Oréal has reached an agreement to acquire the full beauty portfolio of Kering for approximately $4.6 billion (€4 billion).

The deal not only involves the sale of Kering’s beauty division but also establishes a long-term strategic alliance between the two French companies, both leaders in their respective sectors.

The core of the transaction is the acquisition of Creed, the prestigious fragrance house. With this purchase, L’Oréal immediately strengthens its position in the niche fragrance market, one of the fastest-growing segments in the industry.

In addition, the company will obtain exclusive 50-year licences to create, develop and distribute fragrance and beauty products for Gucci, Bottega Veneta and Balenciaga, three of Kering’s most iconic brands.

The decision comes amid a challenging period for the luxury sector. Kering has been one of the groups most affected by the economic slowdown. The sale will allow the company to free up capital and focus resources on its core business: fashion.

A first step under Luca de Meo’s leadership

This move marks one of the first strategic decisions under Luca de Meo, Kering’s new CEO. He highlighted that the alliance with L’Oréal would accelerate the development of fragrances and cosmetics for the group’s main houses, enabling them to achieve greater scale and unlock long-term potential. He also emphasised that the strategy allows Kering to focus on its key strength: the creativity and appeal of its brands.

From L’Oréal, CEO Nicolas Hieronimus stated that the acquisition of Kering Beauty will further consolidate the company’s position as the world leader in luxury beauty.

The transaction, which will be all-cash, is subject to regulatory approval and is expected to close in the first half of 2026.