L’Oréal Acquires Kering’s Beauty Portfolio for $4.6 Billion USD, Solidifying Its Dominance in the Luxury Beauty Market
In a groundbreaking deal that will shake up the luxury beauty industry, L’Oréal has announced its acquisition of Kering’s entire beauty portfolio for a whopping $4.6 billion USD (€4 billion EUR). This move not only includes the sale of Kering’s beauty unit, but also establishes a long-term strategic alliance between the two French giants in the luxury and wellness sectors.
The highlight of the deal is L’Oréal’s acquisition of high-end fragrance house Creed, instantly making it a major player in the rapidly growing niche fragrance market. Additionally, L’Oréal secures exclusive 50-year licenses for the creation, development, and distribution of fragrance and beauty products for Kering’s flagship luxury brands, such as Gucci, Bottega Veneta, and Balenciaga.
For Kering, this sale comes at a time when the luxury industry is facing economic challenges. As one of the biggest conglomerates in the industry, Kering has been hit hard by the downturn and this sale will provide much-needed capital to focus on its fashion business. According to new CEO Luca de Meo, this strategic move is a crucial step in reducing the group’s debt and refocusing resources on its core fashion business.
De Meo stated, “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 Beauté under L’Oréal’s stewardship. This partnership allows us to focus on what defines us best: the creative power and desirability of our houses.”
L’Oréal CEO Nicolas Hieronimus also expressed excitement about the acquisition, stating that it will further solidify the company’s position as the world’s number one luxury beauty company. The all-cash transaction is expected to close in the first half of 2026, pending regulatory approval. This deal marks a major milestone for both L’Oréal and Kering, and will undoubtedly have a significant impact on the luxury beauty market.
