Kering and L'Oréal Forge Landmark Luxury Beauty and Wellness Alliance

Paris, France – Luxury conglomerate Kering and global beauty giant L'Oréal have announced a significant long-term strategic partnership in the luxury beauty and wellness sectors. This binding agreement, valued at €4 billion, was revealed on October 19, 2025, marking a pivotal moment for both companies.

moodiedavittreport.com reported, The alliance encompasses L'Oréal's acquisition of Kering's beauty business, including the prestigious House of Creed, and secures extensive licensing agreements. This move is set to reshape the luxury beauty landscape, leveraging L'Oréal's expertise with Kering's iconic brands.

Under the terms, L'Oréal will gain 50-year exclusive licenses for the creation, development, and distribution of fragrance and beauty products for Kering's major fashion houses. These include Gucci, Bottega Veneta, and Balenciaga, significantly expanding L'Oréal's luxury portfolio.

globalcosmeticsnews.com noted, A key component of the partnership is the establishment of a planned 50/50 joint venture between Kering and L'Oréal. This venture aims to explore emerging business opportunities at the intersection of luxury, wellness, and longevity, combining their respective strengths.

Kering CEO Luca de Meo stated the alliance is a "decisive step" for the group, allowing it to accelerate fragrance and cosmetics development for its Houses. He emphasized focusing on the creative power and desirability of Kering's brands.

Current time information in Nottingham, GB. reported, L'Oréal CEO Nicolas Hieronimus highlighted that the partnership will solidify L'Oréal's position as the world's number-one luxury beauty company. He noted the acquisition of Creed would establish L'Oréal as a leading player in the niche fragrance market.

The €4 billion transaction, payable in cash, is subject to regulatory approvals and is anticipated to close in the first half of 2026. L'Oréal will also pay royalties to Kering for the use of its licensed brands.

• moodiedavittreport.com noted, This strategic alliance follows Kering's earlier efforts to establish its own beauty division, Kering Beauté, which was launched in 2023. Kering had acquired the high-end fragrance house Creed for an estimated €3.5 billion in the same year, aiming to diversify its portfolio and reduce reliance on its core fashion operations.

• The deal allows Kering to address its substantial debt burden, which stood at €9.5 billion at the end of June, and refocus on its core luxury fashion business. Kering had faced challenges in scaling its beauty operations, reporting a €60 million operating loss in the first half of the year.

• globalcosmeticsnews.com reported, For L'Oréal, this acquisition significantly reinforces its leadership in the luxury beauty market, particularly in the high-growth niche fragrance segment with Creed. It also adds prestigious couture brands like Gucci, Bottega Veneta, and Balenciaga to its successful luxury beauty lineup.

• The 50-year exclusive license for Gucci fragrances and beauty products will commence after the expiration of Kering's current license agreement with Coty, which is expected to conclude around 2028. L'Oréal already manages the successful Yves Saint Laurent Beauté brand for Kering.

• Current time information in Nottingham, GB. noted, A joint strategic committee will be established to ensure close coordination between Kering brands and L'Oréal, overseeing the progress of the partnership and aligning on brand and product development. This aims to maximize the potential of the licensed brands.

• The planned 50/50 joint venture into wellness and longevity represents a forward-looking move, combining L'Oréal's innovation capabilities with Kering's deep understanding of luxury clientele. This collaboration seeks to craft cutting-edge experiences and services in an evolving market.

• moodiedavittreport.com reported, The transaction is L'Oréal's largest to date, surpassing its 2023 acquisition of Aesop for $2.5 billion. This indicates L'Oréal's aggressive strategy to expand its luxury portfolio and consolidate its market dominance.

• The announcement led to a sharp increase in Kering's share price, with shares soaring over five percent at the opening of Paris trading, reflecting investor confidence in the strategic shift. L'Oréal's shares also saw a modest rise.