L’Oréal Acquires Kering’s Luxury Beauty Division in Historic €4B Deal
In a landmark transaction set to redefine the luxury beauty landscape, L’Oréal has agreed to acquire Kering’s entire beauty division for €4 billion ($4.7 billion). This marks the largest acquisition in the history of the French cosmetics giant.
The deal encompasses the prestigious House of Creed, a brand Kering had acquired just two years prior for €3.5 billion. Additionally, the acquisition includes exclusive 50-year licenses to develop fragrance and beauty products for Kering’s luxury fashion brands. These brands include the likes of Gucci, Bottega Veneta, and Balenciaga. Notably, L’Oréal will gain the Gucci license once the current agreement with Coty expires in 2028.
“This strategic alliance marks a decisive step for Kering,” stated CEO Luca de Meo, who assumed his role in September and has been actively working to reduce the company’s €9.5 billion debt burden. For L’Oréal CEO Nicolas Hieronimus, the acquisition “further solidifies our position as the world’s #1 luxury beauty company.”
The transaction is projected to close in the first half of 2026, pending regulatory approvals. In addition to the beauty sector, the companies plan to establish a 50/50 joint venture to explore opportunities in the burgeoning wellness and longevity markets.
Source: Bloomberg