Debt-laden French luxury group Kering is selling its beauty products division, including its flagship perfume brand Creed, to cosmetics giant L’Oreal in a deal worth $4.6 billion, both companies announced on Sunday.

 

 

 

The agreement also grants L’Oreal 50-year exclusive licenses to develop and distribute beauty products under Kering’s high-end fashion labels, including Gucci, Bottega Veneta, and Balenciaga.

 

 

 

In a joint statement, Kering and L’Oreal said they were “entering a long-term strategic partnership in luxury beauty and wellness.” The deal, valued at four billion euros overall, is subject to regulatory approval, with payment expected in the first half of 2026.

 

 

 

“Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market,” said L’Oreal chief executive Nicolas Hieronimus in the statement.

 

 

 

 

The exclusive licenses will take effect once Kering’s current licensing deal with the American cosmetics company Coty expires in 2028.

 

 

 

 

The announcement comes just one month after Kering’s new CEO, Luca de Meo, assumed leadership of the group with a mandate to reduce its debt, which currently stands at around 9.5 billion euros.

 

 

 

In July, Kering reported a 46 percent drop in net profit for the first half of the year, falling to 474 million euros, while revenue plunged 16 percent to €7.6 billion.

 

 

 

De Meo described the sale as a “decisive step for Kering,” signaling a strategic shift aimed at stabilizing the company’s finances and refocusing on its core fashion business.