Kering Sells Beauty Division to L'Oréal
Analysis based on 6 articles · First reported Oct 20, 2025 · Last updated Oct 20, 2025
The market reacted positively to the news, with Kering shares jumping 4.7% and L Oréal shares rising 1.4%. This deal is expected to help Kering reduce its significant debt and refocus on its core fashion business, while L Oréal solidifies its position as a leader in luxury beauty and expands into the niche fragrance market.
Kering, a French luxury goods company, is selling its beauty division to L Oréal for 4 billion euros ($4.66 billion). The deal includes the acquisition of House of Creed, a high-end fragrance company, by L Oréal. Additionally, L Oréal will secure 50-year exclusive licenses to create beauty and fragrance products for Kering's major brands, including Kering — Gucci, Kering — Bottega Veneta, and Balenciaga. These licenses will commence after Kering's current partnership with Coty expires in 2028. The transaction, expected to close in the first half of 2026, is a strategic move for Kering's new CEO, Luca de Meo, to address the company's 9.5 billion euro debt and concentrate on its core fashion business. Nicolas Hieronimus, CEO of L Oréal Groupe, stated that this acquisition will strengthen L Oréal's position in the luxury beauty market and allow it to become a leading player in the fast-growing niche fragrance market. Both companies are also exploring joint business opportunities in the wellness and longevity market.
Set up alerts, explore entity relationships, search across thousands of events, and build custom intelligence feeds.
Open Dashboard