Kering and L'Oréal Form Strategic Alliance in Luxury Beauty
Luxury group Kering and beauty giant L'Oréal have announced a long-term strategic partnership focused on luxury beauty and wellness. The deal includes L'Oréal's acquisition of the iconic fragrance house Creed.
Kering, the luxury conglomerate, and L'Oréal, the world's largest beauty company, have signed a strategic partnership agreement expanding into the luxury beauty and wellness sectors. The agreement is valued at €4 billion.
Under the terms of the partnership, L'Oréal will acquire the House of Creed, a historic name in high-end perfumery. Additionally, L'Oréal will be granted 50-year exclusive licenses for the creation, development, and distribution of fragrance and beauty products for Kering's brands Gucci, Bottega Veneta, and Balenciaga. Royalties will be paid to Kering for the use of these licensed brands.
The collaboration aims to leverage Kering's luxury brand portfolio and L'Oréal's beauty expertise to accelerate growth. The transaction, encompassing the Creed acquisition and the establishment of these 50-year licenses, is expected to close in the first half of 2026.
Beyond beauty, the companies will also explore business opportunities at the intersection of luxury, wellness, and longevity through a planned 50/50 joint venture. This alliance allows Kering to concentrate on its core strengths while L'Oréal further solidifies its leading position in the global luxury beauty market.