Kering Group has announced the sale of Kering Beauté, including The House of Creed and exclusive licenses for luxury beauty products, to L’Oréal for €4 billion, aiming to streamline operations and refocus on key fashion sectors.

Information on the Target

Kering Beauté, a prominent division of Kering Group, encompasses The House of Creed and exclusive licenses for 50 years to develop beauty products under renowned fashion houses Gucci, Bottega Veneta, and Balenciaga. The acquisition price for this transaction is set at €4 billion (approximately $4.66 billion), with a target completion date in the first half of 2026. The deal includes a gradual transfer of certain licenses, notably for Gucci, following the expiration of Kering's current contract with Coty in 2028.

This strategic move aims to streamline Kering's business operations and enhance its focus on key areas that drive value creation. The alliance with L’Oréal, a major player in the beauty industry, will further facilitate Kering’s ambition to dominate luxury beauty and wellness markets.

Industry Overview in the Target’s Specific Country

The beauty industry in France, where Kering operates, has been characterized by rapid advancements and a shift towards premium and niche products. The French beauty sector not only commands a significant market share globally