L’Oréal has finalized its EUR 4 billion acquisition of Kering’s beauty division after securing approval from competition authorities, the two French groups said in separate statements on Tuesday, March 31.
The deal, announced in October 2025, includes the sale of the Creed brand and the transfer of Gucci’s beauty operations to L’Oréal once the current license with Coty expires. The transaction also establishes exclusive 50-year licenses for the creation, development and distribution of fragrance and beauty products for the Bottega Veneta and Balenciaga brands.
The all-cash acquisition is expected to help Kering, which has faced several challenging years, reduce its debt and support its recovery.
“By leveraging L’Oréal’s unmatched expertise in the beauty sector, we are opening a new phase of acceleration for the development of fragrances and cosmetics for our houses, among the most iconic in the world,” stated Luca de Meo, Kering’s CEO, in the press releases.
This new milestone “reinforces our position as the world’s number one in both beauty and luxury beauty,” said Nicolas Hieronimus, L’Oréal’s CEO. “We will now work together, over the next fifty years, to write the next chapter of these iconic brands, to unlock their immense growth potential,” he added.
The two groups also indicated that they are continuing to explore opportunities in the wellness and longevity sector through a joint venture.
Kering’s beauty division was created in 2023, notably with the acquisition of the luxury fragrance brand Creed for EUR 3.5 billion.
