Kering and L’Oréal have entered a long-term strategic partnership in luxury beauty and wellness. 

This agreement encompasses the acquisition of the House of Creed by L’Oréal, the beauty and fragrance licenses of iconic Houses of Kering, and an exclusive venture to explore business opportunities in the field of wellness and longevity.

Luca de Meo, CEO of Kering, commented,

“Joining forces with the global leader in beauty, we will accelerate the development of fragrance and cosmetics for our major Houses, allowing them to achieve scale in this category and unlock their immense long-term potential, as did Yves Saint Laurent Beauté under L’Oréal’s stewardship.”

Under the terms of this agreement, Kering has the right to sell Kering Beauté, including the House of Creed, to L’Oréal. As part of L’Oréal Luxe, Creed will be best positioned to accelerate even further its global development across both men’s and women’s markets.

Nicolas Hieronimus, CEO L’Oréal Groupe, said,

“I am delighted to forge this long-term strategic alliance with one of the world’s most prestigious, creative and visionary luxury groups… The addition of these extraordinary brands perfectly complements our existing portfolio and significantly expands our reach into new, dynamic segments of luxury beauty.” 

The partnership includes the rights to enter a 50-year exclusive license for the creation, development, and distribution of fragrance and beauty products for Gucci. This will begin after the expiration of the current license with Coty and respecting the Kering group’s obligations as per the existing license agreement. 

De Meo added, 

“Together, we will also venture into new frontiers of wellness, combining the unrivalled expertise of L’Oréal with our unique luxury reach. This partnership allows us to focus on what defines us best: the creative power and desirability of our Houses.”

Kering will also grant L’Oréal 50-year exclusive licenses for the creation, development, and distribution of fragrance and beauty products for Bottega Veneta and Balenciaga, starting upon closing of the announced transaction.

Hieronimus added,

“Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market. Gucci, Bottega Veneta and Balenciaga are all exceptional couture brands with enormous potential for growth.”

Beyond beauty, Kering and L’Oréal are joining forces to explore business opportunities at the intersection of luxury, wellness, and longevity. 

This exclusive partnership, as a planned 50/50 joint venture, will craft cutting-edge experiences and services combining L’Oréal’s innovation capabilities with Kering’s deep understanding of luxury clients.

The agreement, including the sale of Creed and the establishment of these 50-year licenses on these Houses of Kering, is valued at €4 billion, payable in cash at closing, expected in the first half of 2026.

L’Oréal will also pay royalties to Kering for the use of its licensed brands.

A strategic committee will be established to ensure coordination between Kering brands and L’Oréal and monitor the progress of the partnership.