L'Oreal to Acquire Kering's Beauty Unit for $4.7 Billion

L'Oreal has announced an agreement to acquire Kering's beauty division for $4.7 billion. The deal includes the Creed fragrance line and the rights to develop fragrances and beauty products for the Gucci, Bottega Veneta, and Balenciaga labels.

Specifically, the new 50-year agreement for Gucci fragrances will take effect from 2028. The sale aims to reduce Kering's net debt, which stood at 9.5 billion euros in June.

Kering established its beauty business in 2023, following the acquisition of Creed for 3.5 billion euros, in an effort to diversify. However, it faced growth difficulties, recording losses of 60 million euros in the first half of the year. This move signals a strategic shift under the new CEO, Λούκα ντε Μέο, aiming to refocus on the fashion sector.