Kering and L'Oreal Forge Exclusive Long-Term Strategic Alliance in Luxury Beauty

French luxury goods conglomerate Kering and French multinational cosmetics company L'Oreal Group have announced a long-term strategic partnership in the field of luxury beauty and wellness. The 50/50 joint venture aims to craft cutting-edge experiences and services combining L'Oreal's innovation capabilities with Kering's deep understanding of luxury clients, thereby accelerating growth and unlocking considerable value across high-potential categories.

Under the terms of this exclusive partnership

- Kering is selling its beauty division 'Kering Beaute' to L'Oreal for 4 billion Euros.
- L'Oreal will fully acquire the high-end fragrance house Creed, integrating it into its L'Oreal Luxe portfolio to expand in the niche fragrance market.
- Kering will also grant L'Oreal 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), Bottega Veneta and Balenciaga.
- L'Oreal will also pay royalties to Kering for the use of its licensed brands.
- To ensure coordination and monitor the progress of the partnership, a strategic committee will be established

'This strategic alliance marks a decisive step for Kering. 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 Beaute under L'Oreal's stewardship. Together, we will also venture into new frontiers of wellness, combining the unrivalled expertise of L'Oreal with our unique luxury reach. This partnership allows us to focus on what defines us best: the creative power and desirability of our Houses,' declared Luca de Meo, CEO of Kering.

'I am delighted to forge this long-term strategic alliance with one of the world's most prestigious, creative and visionary luxury groups. This partnership will further solidify our position as the world's #1 luxury beauty company and allow us to explore new avenues in wellness together. The addition of these extraordinary brands perfectly complements our existing portfolio and significantly expands our reach into new, dynamic segments of luxury beauty. Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market. Gucci, Bottega Veneta and Balenciaga are all exceptional couture brands with enormous potential for growth,' added Nicolas Hieronimus, CEO L'Oreal Groupe.

The agreement between Kering and L'Oreal is expected to close in the first half of 2026, subject to regulatory approvals and Kering's obligations under French employment law.

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