Coty and Kering announced yesterday an agreement to end the Gucci Beauty license approximately one year ahead of its scheduled expiration, with Coty receiving approximately US$400 million. Under the agreement, Coty will cease operating the Gucci Beauty business on June 30, 2027.
“This agreement delivers a favorable outcome to conclude the Gucci Beauty license, enabling Coty to redeploy capital and focus on our priority brands. It recognizes the substantial value created in Gucci Beauty under our stewardship and enhances our financial flexibility,” said Markus Strobel, Executive Chairman and Interim CEO of Coty.
Following this announcement, L’Oréal announced entering into a fifty-year exclusive license agreement for the creation, development, and distribution of fragrances and beauty products for the Gucci brand, pursuant to the terms of the alliance forged on 19th October 2025 with Kering.
“I am truly excited by the opportunity to welcome Gucci Beauty within the L’Oreal roster of brands with one year anticipation,” said Nicolas Hieronimus, CEO of L’Oréal. “It is the start of a 50-year journey, a significant additional growth engine for L’Oréal and new milestone in our partnership with Kering.”
“The arrival of this iconic brand adds a unique, highly complementary creative energy to our portfolio. By fusing Gucci’s radical edge with our world-class engine, we are set to build a new multi-billion-euro house," added Cyril Chapuy, President, L’Oréal Luxe
In connection with the transaction, Coty and Kering have agreed to a mutual resolution of all pending litigation and related claims concerning the Gucci Beauty license.
