Kering and L'Oréal today announced a long-term strategic partnership in luxury beauty and wellness. This firm agreement covers the acquisition of the Creed house by L'Oréal, the signing of beauty and fragrance licenses for Kering's iconic houses, and an exclusive joint venture to explore development opportunities in the field of wellness and longevity.
Building on the success of Yves Saint Laurent Beauté, this alliance consolidates the long history of collaboration between two global giants with complementary strengths: Kering's iconic luxury brands on the one hand, and L'Oréal's expertise in beauty on the other, in order to accelerate the growth of these brands and create significant value in these high-potential categories.
Under the terms of the agreement, Kering has the right to sell Kering Beauté, including Creed, to L'Oréal. Creed is one of the world's leading luxury perfume houses, renowned for its expertise and mastery of rare natural ingredients. Within L'Oréal Luxe, Creed will be ideally positioned to further accelerate its global development in the men's and women's fragrance markets.
In addition, the partnership includes the rights to enter into a fifty-year exclusive license agreement for the creation, development and distribution of Gucci fragrance and beauty products, starting after the expiry of the current license with Coty, in compliance with the Kering Group's obligations under the existing license agreement.
Kering will also grant L'Oréal exclusive fifty-year licenses for the creation, development and distribution of perfume and beauty products for Bottega Veneta and Balenciaga, from completion of the transaction.
A strategic committee will be set up to ensure coordination between the Kering and L'Oréal brands and monitor the progress of our partnership.
The agreement, including the disposal of Creed and the establishment of 50-year licenses for Kering's iconic Maisons, amounts to 4 billion euros, payable in cash upon completion of the transaction, scheduled for the first half of 2026. L'Oréal will also pay royalties to Kering for the use of the licensed brands.
In addition to the beauty partnership, Kering and L'Oréal are joining forces to explore strategic opportunities at the crossroads of luxury, well-being and longevity. This exclusive partnership, planned as a 50/50 joint venture, will create experiences and services that combine L'Oréal's innovation capabilities with Kering's in-depth knowledge of luxury customers.
" This strategic alliance marks a decisive step for Kering ", said Luca de Meo, CEO of Kering. " By joining forces with the world leader in beauty, we will significantly accelerate the development of fragrances and cosmetics for our leading Houses, enabling them to achieve critical mass in this category and unleash their immense long-term potential, as Yves Saint Laurent Beauté has done under L'Oréal's leadership. Together, we will also explore new horizons in wellness, combining L'Oréal's unrivalled expertise with our unique reach into the luxury sector. This partnership allows us to focus on what defines us best: our creative power and the appeal of our Houses. "
" I'm delighted to seal this long-term strategic alliance with one of the world's most prestigious, creative and visionary luxury groups. This partnership will further strengthen our position as the world's number one in luxury beauty, and enable us to explore new avenues together in the field of well-being. ", said Nicolas Hieronimus, Managing Director of L'Oréal Groupe. " The addition of these extraordinary brands perfectly complements our existing portfolio and significantly expands our presence in dynamic new luxury beauty segments. With 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 growth potential. "
The agreement is subject to customary conditions, including regulatory approvals. The agreement is also subject to Kering's obligations under French labor law, and includes Kering's right to sell Kering Beauté to L'Oréal under an exclusivity agreement with L'Oréal.
