L’Oréal will acquire Kering’s luxury beauty portfolio for €4 billion, boosting its standing in high-end cosmetics and fragrances, according to Euronews.
The deal grants L’Oréal a 50-year license for Kering’s leading fashion houses, including Gucci, Bottega Veneta and Balenciaga, and brings the niche fragrance brand Creed under L’Oréal’s ownership.
Kering CEO Luca de Meo said the sale will accelerate growth in the company’s beauty segment and create new wellness opportunities. L’Oréal CEO Nicolas Hieronimus described the acquisition as a strategic alliance, expanding L’Oréal’s presence in luxury beauty and niche fragrances.
The two French companies also plan to start a joint venture focused on wellness and longevity. This collaboration will aim to develop new products and initiatives that merge luxury branding with advances in self-care and health.
This deal will help Kering lower its debt, which was €9.5 billion in June, and let the company focus more on its main fashion and accessories brands, such as Gucci, Saint Laurent and Alexander McQueen.
