Kering to sell beauty unit to L’Oréal in 4 billion euro deal

Kering said on Sunday it has agreed to sell its beauty division to L’Oréal in a longterm strategic partnership valued at about 4 billion euros, a move the luxury group’s new chief executive called a step toward reducing debt and refocusing on fashion. The binding agreement, announced by both companies, includes L’Oréal’s acquisition of highend fragrance house Creed and grants L’Oréal 50 year exclusive licenses to develop, manufacture and distribute fragrance and beauty products for Gucci, Bottega Veneta and Balenciaga. The cash payment is due at closing, which the companies expect in the first half of 2026, and L’Oréal will pay royalties to Kering for use of the licensed brands.

Under the arrangement, L’Oréal’s exclusive Gucci license will begin after the expiration of the brand’s current fragrance deal with Coty. Analysts expect that contract to lapse in 2028, though the companies did not set a specific start date beyond the contractual trigger. The deal also commits the two groups to explore commercial opportunities at the intersection of luxury, wellness and longevity, an area both described as a potential growth vector beyond traditional beauty.