Kering and L’Oréal have announced that they are entering a long-term strategic partnership in luxury beauty and wellness. The agreement, including the sale of Creed (acquired by Kering in 2023) and the establishment of 50-year licenses on key Kering brands, including Gucci, is valued at €4 billion (more than $4.6 billion dollars). The deal is expected to close in the first half of 2026. L’Oréal will also pay royalties to Kering for the use of its licensed brands.
Beyond beauty, Kering and L’Oréal are joining forces to explore business opportunities at the intersection of luxury, wellness and longevity. This exclusive partnership, in the form of a planned 50/50 joint venture, will craft cutting-edge experiences and services combining L’Oréal’s innovation capabilities with Kering’s deep understanding of luxury clients.
The licensing deal builds on L'Oreal's success of Yves Saint Laurent Beauté. The 50-year exclusive license for the creation, development and distribution of fragrance and beauty products for Gucci commences after expiration of the current license with Coty.
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 the announced transaction.
A strategic committee will be established to ensure coordination between Kering brands and L’Oréal to monitor the progress of their partnership.
“This strategic alliance marks a decisive step for Kering,” declared Luca de Meo, CEO of 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.”
“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.” said Nicolas Hieronimus, CEO L’Oréal Groupe. “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.”
