Kering, the debt-burdened French luxury group, is selling its beauty products division — including its iconic perfume brand Creed — to cosmetics giant L’Oréal in a deal worth $4.6 billion, the companies announced on Sunday.
The agreement also gives L’Oréal 50-year exclusive rights to develop and distribute beauty products under Kering’s luxury fashion labels, such as Gucci, Bottega Veneta, and Balenciaga.
In a joint statement, the companies described the deal as a “long-term strategic partnership in luxury beauty and wellness.” Valued at four billion euros, the agreement is awaiting regulatory approval and is expected to be finalized 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 L’Oréal CEO Nicolas Hieronimus.
The new licensing arrangement will begin once Kering’s current deal with U.S. cosmetics company Coty expires in 2028.
This sale comes shortly after Kering’s new CEO, Luca de Meo, took over with a clear goal: reduce the group’s heavy debt of roughly 9.5 billion euros.
In July, the company reported a 46 percent drop in net profit for the first half of the year, down to 474 million euros, alongside a 16 percent revenue decline to €7.6 billion.
De Meo called the sale a “decisive step” to stabilize Kering’s finances and sharpen its focus on its core fashion business.
