Building on the success of Yves Saint Laurent Beauté, this alliance consolidates the long history of collaboration between two world leaders with complementary strengths.
The French luxury group Kering is selling its beauty division, including the Creed brand, to its compatriot L’Oréal as well as the development of Gucci beauty products after the expiration of the current license with Coty, according to a joint press release. This announcement comes just one month after Luca De Meo, CEO of Kering, took office, responsible for turning around the group, which has been battered for several years by the difficulties of its flagship brand Gucci.
The agreement, including the sale of Creed and the establishment of 50-year licenses for Kering’s iconic brands, amounts to 4 billion euros, payable in cash upon completion of the operation planned for the first half of 2026, the press release specifies. L’Oréal will also pay royalties to Kering for the use of the licensed brands.
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The partnership includes “the rights to enter into an exclusive 50-year licensing agreement for the creation, development and distribution of Gucci’s perfume and beauty products, commencing after the expiration of the current license with Coty, in compliance with the Kering Group’s obligations under the existing licensing agreement», He added.
“A decisive step for Kering”
According to a note from HSBC analysts, the Gucci license expires at the American Coty in 2028. It is also included a “exclusive partnership, planned in the form of a 50/50 joint venture, which will create experiences and services combining the innovation capabilities of L’Oréal and the in-depth knowledge of Kering’s luxury customers».
«This strategic alliance marks a decisive step for Kering“, declares Luca de Meo, quoted in the press release, and “allows us to focus on what defines us best: our creative power and the attractiveness of our Houses».
«The addition of these extraordinary brands perfectly complements our existing portfolio and significantly expands our presence in dynamic new luxury beauty segments (…) Gucci, Bottega Veneta and Balenciaga are all exceptional couture brands with enormous growth potential», Declares the general director of L’Oréal, Nicolas Hieronimus, also quoted in the press release.
L’Oréal has already owned the license for Yves Saint Laurent beauty products since 2008. Kering’s beauty division was created in 2023 with the acquisition of the luxury perfume brand Creed for 3.5 billion euros.
