Kering's beauty exit: L'Oréal snaps up division in €4 billion deal

The French cosmetics giant L’Oréal is set to acquire Kering Beauté in the first half of 2026, which includes House of Creed and the beauty and fragrance licenses of Houses of Kering.

The agreement marks a strategic shift for Kering, which only established its beauty division in 2023, aiming to develop the beauty arms for its Bottega Veneta, Balenciaga, Alexander McQueen, Pomellato and Qeelin houses.

What the deal covers:

• Acquisition of the House of Creed, founded in 1760, by L’Oréal;
• 50-year exclusive licenses for the creation, development, and distribution of fragrance and beauty products for:-
  • Gucci, after expiration of the current license with Coty in 2028;
  • Bottega Veneta; and
  • Balenciaga
• 50/50 joint venture “to explore business opportunities at the intersection of luxury, wellness, and longevity"

This new agreement consolidates and expands an exclusive partnership between two global leaders with complimentary strengths: L’Oréal has made fragrances and cosmetics for Yves Saint Laurent under license from Kering since 2008.

The alliance is powered by a strategic sharing of intellectual property, with trade marks, R&D know-how and patents at the heart of the collaboration. L’Oréal brings innovation and development capabilities while Kering contributes its understanding of luxury clientele and brand storytelling.

The transaction highlights the fast-evolving dynamics in luxury beauty — where heritage meets innovation and actors need to join forces (and share their IP!) in order to scale and compete globally.

“Joining forces with the global leader in beauty, we will accelerate the development of fragrance and cosmetics for our major Houses, allowing them to achieve scale in this category and unlock their immense long-term potential, as did Yves Saint Laurent Beauté under L’Oréal’s stewardship,” Kering chief executive Luca de Meo said in a statement. “This partnership allows us to focus on what defines us best: the creative power and desirability of our houses.”

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