Editor’s Note
This article outlines a major strategic partnership between Kering and L’Oréal, valued at €4 billion, which includes the acquisition of House of Creed and key fragrance licenses.
Kering and L’Oréal have announced the signing of a long-term strategic partnership in the luxury beauty and wellness sector. This binding agreement encompasses L’Oréal’s acquisition of House of Creed, the beauty and fragrance licenses for Kering’s iconic Houses – ‘Gucci’, ‘Balenciaga’, ‘Bottega Veneta’, etc. – and an exclusive initiative to explore business opportunities in the wellness and longevity space.
The deal is valued at €4 billion, payable in cash at closing, expected in the first half of 2026, in addition to royalties for the use of licensed brands.
‘Creed’, a brand with a genuine legacy in high perfumery, is among the leading high-end luxury fragrance houses, recognized for its craftsmanship and mastery of natural ingredients.
The partnership includes the rights to establish an exclusive 50-year license for the creation, development, and distribution of fragrances and beauty products for ‘Gucci’, which will commence after the expiration of the current license with Coty, expected around 2028, and will respect Kering’s obligations under the existing license agreement.
Kering will also grant L’Oréal exclusive 50-year licenses for the creation, development, and distribution of fragrances and beauty products for ‘Bottega Veneta’ and ‘Balenciaga’, effective from the closing of the announced transaction.
A strategic committee will be created to ensure coordination between Kering’s brands and L’Oréal and to oversee the progress of the partnership.
Beyond beauty, Kering and L’Oréal are joining forces to explore business opportunities at the intersection of luxury, wellness, and longevity. This exclusive alliance, in the form of a planned 50/50 joint venture, will create cutting-edge experiences and services that combine L’Oréal’s innovation capabilities with Kering’s deep understanding of luxury clients.
