In a bold stroke that could redefine the global luxury landscape, L’Oréal SA announced plans to buy the beauty division of Kering SA — the parent company behind fashion giants Gucci, Balenciaga, and Bottega Veneta — in a €4 billion ($4.7 billion) all-cash deal. The move marks one of the largest beauty acquisitions in recent years and is designed to fortify L’Oréal’s dominance in the high-end cosmetics and fragrance arena.
The agreement, revealed late Sunday, includes not only the acquisition of Kering’s beauty arm — home to the iconic House of Creed — but also a long-term licensing partnership granting L’Oréal rights to develop and sell fragrances and cosmetics for Kering’s fashion labels.
A Strategic Match Between Beauty and Fashion Titans
“This addition of extraordinary brands perfectly complements our existing portfolio and propels us deeper into the luxury beauty universe,” said Nicolas Hieronimus, L’Oréal’s CEO.
The acquisition is valued at €4 billion, all payable in cash, while L’Oréal will also provide ongoing royalty payments to Kering for the licensed use of its designer brands. French law firm BDGS Associés is serving as legal counsel to L’Oréal, while representation for Kering remains undisclosed.
