On October 19, Kering and L’Oréal announced a long-term strategic partnership in the fields of luxury beauty and wellness. The binding agreement includes L’Oréal’s acquisition of the House of Creed, long-term fragrance and beauty licenses for Kering’s brands, and the establishment of a joint venture dedicated to exploring new business opportunities in wellness and longevity.
Kering × L’Oréal — Two Luxury Titans Unite Again
Having already achieved success together through Yves Saint Laurent Beauté, this alliance deepens the longstanding relationship between the two French powerhouses. By combining Kering’s iconic luxury houses with L’Oréal’s world-leading expertise in beauty research and innovation, the partnership aims to accelerate growth across high-potential categories and create new value in the luxury beauty space.
Under the terms of the agreement, Kering has the right to sell Kering Beauté and the House of Creed to L’Oréal. Known for its mastery of rare natural ingredients and artisanal perfumery, Creed has long held a prestigious position in the world of haute parfumerie. Under L’Oréal Luxe, the brand is expected to accelerate further its global expansion across men’s and women’s markets.
50-Year Exclusive Licenses for Gucci, Bottega Veneta, and Balenciaga
The deal also grants L’Oréal a 50-year exclusive license for the creation, development, and distribution of fragrance and beauty products for Gucci, commencing after the expiration of Kering’s current license with Coty. Likewise, L’Oréal will obtain 50-year exclusive licenses for Bottega Veneta and Balenciaga once the transaction is completed. This unprecedented partnership merges Kering’s heritage of aesthetic excellence with L’Oréal’s technological know-how, ushering in a new era for luxury beauty.
The total transaction value is set at €4 billion, with completion expected in the first half of 2026. L’Oréal will pay royalties to Kering for the use of its licensed brands, and a joint strategic committee will be established to oversee collaboration and ensure alignment between both groups.
A 50/50 Joint Venture to Explore the Future of Wellness and Longevity
Beyond beauty, the two companies are also joining forces to develop new ventures at the intersection of luxury, wellness, and longevity. The 50/50 joint venture will combine L’Oréal’s innovation capabilities with Kering’s deep understanding of luxury consumers to create forward-thinking experiences and services that redefine well-being in the modern era.
Commenting on the partnership, Kering CEO Luca de Meo stated:
“This partnership represents a highly significant step for Kering. By joining forces with the world leader in beauty, we can further accelerate the growth of our fragrance and cosmetics businesses across our maisons. As demonstrated by Yves Saint Laurent Beauté, we aim to unlock long-term potential by combining L’Oréal’s expertise with our luxury reach, opening new frontiers in wellness.”
L’Oréal Group CEO Nicolas Hieronimus added:
“We are proud to form this long-term alliance with one of the world’s most creative and visionary luxury groups. This partnership further strengthens L’Oréal’s position as the number one luxury beauty company in the world, while paving the way for new opportunities in wellness. Through Creed, we will enhance our presence in the fast-growing niche fragrance market, and with exceptional brands like Gucci, Bottega Veneta, and Balenciaga, we will continue to redefine the future of luxury beauty.”
The partnership between Kering and L’Oréal marks a historic milestone that transcends the boundaries of beauty and wellness. More than a simple brand alliance, it represents a bold redefinition of the modern luxury lifestyle — one that is set to shape the next era of the global luxury industry.
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