French luxury conglomerate Kering has agreed to sell its beauty products division, including the iconic perfume brand Creed, to global cosmetics powerhouse L’Oréal in a landmark deal valued at $4.6 billion.
The agreement, announced jointly by both companies on Sunday, also grants L’Oréal 50-year exclusive licenses to develop and distribute beauty lines for Kering’s prestigious fashion houses — Gucci, Bottega Veneta, and Balenciaga.
In their joint statement, Kering and L’Oréal described the move as a “long-term strategic partnership in luxury beauty and wellness.” The deal, valued at four billion euros, is pending regulatory approval, with completion expected in the first half of 2026.
“Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market,” said Nicolas Hieronimus, L’Oréal’s chief executive officer.
The exclusive licenses for Kering’s fashion brands will officially commence in 2028, following the expiration of the company’s current licensing arrangement with Coty Inc., an American cosmetics giant.
The sale comes just weeks after Kering’s new CEO, Luca de Meo, took over leadership of the debt-heavy group, which currently carries an estimated €9.5 billion in debt.
In July, Kering reported a 46% decline in net profit for the first half of the year — dropping to €474 million, with revenue falling 16% to €7.6 billion.
De Meo described the sale as a “decisive step for Kering,” emphasizing that the move represents a strategic effort to stabilize the company’s finances and refocus on its core fashion and luxury segments.