Kering and L'Oréal Form $4 Billion Strategic Alliance in Luxury Beauty and Wellness

In a landmark move reshaping the luxury-beauty landscape, Kering Group and L’Oréal Group have agreed to a strategic alliance valued at approximately €4 billion (about USD 4.6–4.7 billion).

Under the terms of the deal, L’Oréal will acquire the prestigious fragrance house Creed, a brand that Kering acquired in 2023, and will obtain long-term, 50-year exclusive licenses to develop, produce and distribute beauty and fragrance products under Kering’s marquee fashion labels including Gucci, Bottega Veneta and Balenciaga.

Beyond this brand transfer and licensing structure, the two groups will establish a joint strategic committee to coordinate brand and category collaboration and set up a 50-/50 joint venture focused on exploring the wellness and longevity sectors — an area of growing interest in luxury and beauty.

For Kering, this step allows the company to sharpen its focus on its core luxury fashion business by off-loading its beauty arm, thereby freeing up capital and strategic bandwidth. Under new CEO Luca de Meo, who took the helm earlier in 2025, the group is seeking to reduce its heavy debt load and streamline operations.

For L’Oréal, the acquisition significantly boosts its luxury portfolio, strengthens its leadership in high-end and niche fragrances, and aligns with its ambition to expand further into premium beauty and lifestyle segments.

The transaction is expected to close in the first half of 2026, subject to regulatory approvals and the conclusion of existing licensing agreements.

This alliance is regarded as one of the most significant beauty-industry collaborations in recent years: it links a major luxury-fashion house and the world’s largest pure-play beauty group in a deal that spans brand ownership, long-term licensing, and new ventures in wellness — signalling how luxury and beauty are converging in scope and ambition.