The owner of Gucci joins forces with L’Oreal to whom she sells her cosmetics business for 4 billion

The French luxury group Keringowner of brands such as Gucci and now headed by former CEO of Renault (2020-2025) and SEAT Luca de Meo (2015-2020), announced this morning that it has reached an agreement to sell its beauty business to the cosmetics giant L’Oréal for 4,000 million euros. An operation that comes to alleviate their heavy financial debt. In a joint statement published overnight from Sunday to Monday, the two companies indicate that Kering will divest those beauty activities, which include particularly its Creed brand, which is one of the great perfumes.

Both groups have stressed that Believe in L’Oréal “will be ideally placed to further accelerate its development in the men’s and women’s fragrance markets.” The pact also implies an exclusive license for a period of 50 years for the creation, development and distribution of Gucci perfumery and beauty products, which will begin as soon as the current license with Coty expires.

Exclusive licenses for Bottega Veneta and Balenciaga

Kering will also grant exclusive licenses so that L’Oréal can create, develop and distribute other perfumes and beauty products for its brands Bottega Veneta and Balenciaga, and that since the operation is carried out, something that is planned for the first half of 2026. In parallel, Kering and L’Oréal are associated through a subsidiary in which each will have 50% to “explore strategic opportunities” in luxury, wellness and longevity businesses. It is about “creating experiences and services that combine L’Oréal’s innovation capabilities and Kering’s deep customer understanding of luxury.”

The 4,000 million euros that constitute the sale price will be paid in cash at the time the operation is carried out and in addition to that L’Oréal will pay royalties to Kering for the use of licensed brands. The new CEO of Kering, Luca de Meo, has highlighted that “This strategic alliance marks a decisive stage” for your company, since with it “we will considerably accelerate the development of fragrances and cosmetics for our major brands, allowing them to reach a critical size in this category and unleash their immense long-term potential.”