On March 31, L’Oréal announced the completion of its acquisition of Kering Beauté as part of its strategic alliance with Kering. The transaction includes the House of Creed, one of the world’s foremost luxury fragrance maisons, as well as the signing of fifty-year exclusive licenses for the development, manufacturing, and distribution of fragrance and beauty products for Bottega Veneta and Balenciaga.
The agreement follows the terms originally announced on October 19, 2025, and represents a significant milestone in the long-term strategic partnership between L’Oréal and Kering.
Regarding Gucci, the right to enter into a similar fifty-year exclusive license agreement will take effect upon the expiration of the current license with Coty, in full compliance with Kering’s existing contractual obligations.
In addition, both groups will continue to explore new development opportunities in the fields of wellness and longevity through a joint venture.
Strengthening L’Oréal’s Leadership in Luxury
Nicolas Hieronimus, Chief Executive Officer of L’Oréal, commented: “On behalf of the Group, I am delighted to welcome these extraordinary brands into the L’Oréal family. This significant new milestone in our strategic partnership with Kering reinforces our position as the world’s number one in both beauty and luxury beauty. We will now work together, over the next fifty years, to write the next chapter of these iconic brands, to unlock their immense growth potential.”
Cyril Chapuy, President of L’Oréal Luxe, added: “This acquisition marks a defining milestone for L’Oréal Luxe. By bringing these iconic houses into our portfolio, we are uniting around the very essence of luxury: bold creativity, exceptional craftsmanship, and a forward-looking vision of beauty. I’m especially proud to welcome the teams behind these maisons, who contribute to their unique identity. Together, we are strengthening L’Oréal Luxe’s leadership and reinforcing our ambition to be the ultimate destination for the world’s most aspirational luxury beauty experiences.”
Luca de Meo, Chief Executive Officer of Kering, described the partnership as a decisive step forward for the Group. By leveraging L’Oréal’s unmatched expertise in the beauty sector, Kering’s portfolio of iconic brands is expected to enter a new phase of accelerated growth in fragrances and cosmetics. Through this long-term partnership, the Group aims to fully unlock the potential of its maisons, building on their creativity, desirability, and excellence.
A New Competitive Axis: The Convergence of Beauty and Luxury
Beyond a simple acquisition, the transaction signals a broader shift in the relationship between luxury fashion houses and beauty companies. Traditionally, fragrances and cosmetics were often managed through external licensing agreements. However, recent years have seen a growing emphasis on retaining tighter control over brand value and category expansion.
For L’Oréal, the addition of Creed—an ultra-high-value fragrance maison—combined with long-term stewardship of beauty development for houses such as Bottega Veneta and Balenciaga, represents a strategic move to further strengthen its position in the luxury beauty market.
For Kering, the partnership serves as a strategic lever to accelerate growth in the beauty category while fully leveraging the creative power and desirability of its fashion maisons.
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