Kering Group and L'Oreal Group announced today their long-term strategic partnership in the luxury beauty and health sectors. This legally binding agreement encompasses three core components: L'Oreal's acquisition of the Creed brand, the license for Kering's signature beauty and fragrance brands, and the establishment of an exclusive collaboration project to explore commercial opportunities in health and longevity.

Building on the successful collaboration with Yves Saint Laurent Beauty, this alliance further solidifies the long-term cooperative relationship between the two global leaders. Their complementary strengths — Kering's influential luxury brand portfolio and L'Oreal's world-class expertise in beauty — will jointly drive growth in high-potential categories, unlocking considerable value.

Under the terms of the agreement, Kering Group has the right to sell its beauty business, including the Creed brand, to L'Oreal Group. As a classic brand in the premium fragrance sector, Creed is a leader in high-end luxury perfumes, renowned for its exquisite craftsmanship and mastery of rare natural ingredients. Upon joining L'Oreal's luxury division, Creed will benefit from more favorable development conditions, accelerating its presence in the global niche fragrance market for both men and women.

An important provision of this cooperation includes a 50-year exclusive licensing agreement, which will be signed after the expiry of Kering's existing licensing agreement with Coty Group, authorizing L'Oreal to oversee the development, production, and distribution of Gucci brand fragrances and beauty products. The agreement will strictly adhere to Kering’s obligations within the current licensing contract.

Additionally, Kering will grant L'Oreal another 50-year exclusive license allowing L'Oreal to manage the development, production, and distribution of Bottega Veneta and Balenciaga brand fragrances and beauty products once the announced transaction is finalized.

To ensure synergy between Kering brands and L'Oreal Group and to monitor the progress of their collaboration, a dedicated strategic committee will be established.

The total valuation of this agreement (including the sale of the Creed brand and the signing of the aforementioned 50-year licensing agreements for Kering's iconic brands) amounts to 4 billion euros, payable in cash upon completion of the transaction; it is expected to conclude in the first half of 2026. Furthermore, during the period of using Kering's licensed brands, L'Oreal Group will also pay Kering a royalty fee.

Beyond the beauty sector, Kering Group and L'Oreal Group will also collaborate to explore commercial opportunities at the intersection of luxury, health, and longevity. The two companies plan to establish a joint venture with equal equity of 50%, combining L'Oreal's innovative capabilities with Kering's deep insights into luxury clientele to create cutting-edge experiences and services.

Luca de Meo, CEO of Kering Group, stated, “This strategic alliance represents a crucial step in the evolution of Kering Group. Partnering with a leader in the global beauty space, we will accelerate the development of our core brands in the fragrance and cosmetics segments, enabling them to achieve scale breakthroughs and unlock substantial long-term potential – as evidenced by the achievements of Yves Saint Laurent Beauty under L'Oreal's management. Additionally, we will jointly explore new frontiers in health, merging L'Oreal's unparalleled expertise with our unique influence in the luxury sector. Through this collaboration, we can focus more on our core strengths: the creativity and appeal of our brands.”

Nicolas Hieronimus, CEO of L'Oreal Group, remarked, “I'm excited to establish a long-term strategic alliance with one of the world's most prestigious, creative, and visionary luxury groups. This collaboration will further solidify our position as the largest luxury beauty company globally and jointly explore new avenues in health. The addition of these exceptional brands will perfectly complement our existing portfolio and significantly expand our footprint in the emerging vitality segments of luxury beauty. With the acquisition of Creed, we will establish a leadership position in the fast-growing niche fragrance market, while Gucci, Bottega Veneta, and Balenciaga represent powerful couture brands with tremendous growth potential.”

This agreement includes standard terms and conditions, including the requirement for regulatory approval. Additionally, all parties will adhere to Kering's obligations under French labor laws, with Kering holding the right to sell its beauty business to L'Oreal Group, which will enjoy the relevant exclusivity rights.

About Kering Group Kering Group is a family-led global luxury group that brings together a passionate and skilled talent pool dedicated to nurturing creative brands across haute couture, ready-to-wear, leather goods, jewelry, eyewear, and beauty: Gucci, Yves Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, Dodo, Qeelin, Ginori 1735, and Kering Eyewear and Kering Beauty. Through the creative heritage of its brands, Kering crafts and designs outstanding products and experiences that reflect the group's commitment to excellence, sustainability, and cultural heritage, encapsulated in its brand mantra: “Creativity is our Legacy.” In 2024, Kering Group will employ approximately 47,000 people and achieve revenues of 17.2 billion euros.

About L'Oreal Group For 115 years, as a leader in the global beauty industry, L'Oreal Group has focused on one mission: to satisfy the world’s consumers' aspirations for beauty. The group’s mission — “create the beauty that moves the world” — defines its approach to beauty: inclusive, ethically-minded, and committed to social and environmental sustainability. L'Oreal Group boasts a diverse portfolio of 37 international brands and has set ambitious sustainability commitments within the “L'Oréal for the Future” program, delivering first-class products in terms of quality, efficacy, safety, authenticity, and responsibility, while celebrating beauty's endless diversity.

L'Oreal Group employs over 90,000 dedicated individuals, with balanced geographical business distributions and products sold through all channels (e-commerce, mass market, department stores, pharmacies, perfumeries, hair salons, brand boutiques, and travel retail). In 2023, the group achieved sales of 41.18 billion euros. L'Oreal operates 20 research centers in 11 countries worldwide and boasts a specialized research and innovation team of over 4,000 scientists and 6,400 digital experts, dedicated to exploring the future of beauty and aspiring to lead in the "beauty tech" sector.