Kering to Sell Beauty Unit to L'Oréal for €4B

L'Oréal has agreed to acquire Kering’s premium beauty business for €4 billion, including the House of Creed and 50-year exclusive licences to develop and distribute fragrances and beauty products for Gucci, Bottega Veneta and Balenciaga. The Gucci licence will begin after Kering’s current fragrance agreement with Coty expires, widely expected in 2028. The transaction is expected to close in the first half of 2026 and has been reported at about $4.7bn/£3.5bn in equivalent terms. Kering’s CEO Luca de Meo said the sale is aimed at cutting net debt (around €9.5bn at end‑June) and refocusing the group on its core fashion and leather‑goods businesses after the beauty push underperformed. Kering bought Creed in 2023 for roughly €3.5bn and its beauty division posted a reported €60m operating loss in H1, prompting the reversal. Analysts welcomed the strategic alliance for strengthening L'Oréal’s luxury fragrance footprint, and markets pushed Kering shares higher while giving L'Oréal a more modest bump.