Kering agrees €4bn sale of beauty division to L’Oréal
Deal includes rights to develop products under Gucci, Bottega Veneta and Balenciaga labels
Kering has agreed a €4bn deal to sell its beauty business to L’Oréal as its new chief executive looks to revitalise the struggling luxury group.
The agreement included the sale of its perfumer House of Creed as well as 50-year licences to develop and sell products under the Gucci, Bottega Veneta and Balenciaga labels, Kering said on Sunday.
L’Oréal will pay royalties to Kering for use of the licensed brands.
The sale, expected to close in the first half of 2026, represents a U-turn by the Paris-listed company, which had previously sought to grow its beauty business in-house.
It is also one of the first big restructuring moves by new Kering chief executive Luca de Meo, who arrived in September from carmaker Renault with a mandate to turn around the flagging business.
Kering’s shares have risen more than 60 per cent since de Meo’s appointment was announced in June.
L’Oréal owns dozens of brands ranging from Maybelline to Prada and Saint Laurent’s beauty licences.
Kering is one of the world’s biggest luxury groups but has lagged behind peers as Gucci’s performance has plummeted in recent years.
The beauty licence for Gucci, Kering’s biggest brand by sales and profits, will go to L’Oréal after its current contract with Coty expires in 2028.
“This strategic alliance marks a decisive step for Kering,” de Meo said in a statement.
“Joining forces with the global leader in beauty, we will accelerate the development of [these] fragrance[s] and cosmetics . . . allowing them to achieve scale,” the statement added.