Key takeaways
- L’Oréal acquires Kering Beauté, including the House of Creed.
- The €4 billion deal includes long-term licences for Gucci, Balenciaga and Bottega Veneta.
- A new joint venture will explore luxury wellness and longevity.
- The partnership strengthens L’Oréal’s position in niche fragrance and luxury beauty.
- Strategic committee to ensure brand alignment and innovation.
L’Oréal has today announced it will acquire Kering Beauté, which includes fragrance brand Creed and the beauty and fragrance licences for iconic fashion houses such as Gucci, and enter into a new partnership with luxury group Kering to “explore new avenues in wellness together.”
Kering’s beauty division was created in 2023 with the acquisition of the luxury perfume brand Creed. Alongside its Kering Beauté division, the luxury group Kering owns fashion brands such as Gucci, Saint Laurent, Bottega Veneta, Balenciaga and McQueen, as well as Kering Eyewear.
L’Oréal has already held the Yves Saint Laurent beauty product licence since 2008.
Strategic acquisition: Creed and iconic fashion licences
According to a press statement from L’Oréal Groupe, the alliance further consolidates the long history of collaboration between the iconic luxury brands of Kering and the French beauty multinational’s extensive experience in beauty and personal care.
The acquisition includes incorporating Creed into L’Oréal Luxe for global expansion, and the rights to a 50-year exclusive licence for the creation, development and distribution of fragrance and beauty products for Gucci, which will commence after the expiration of the current licence with Coty.
Kering will also grant L’Oréal 50-year exclusive licences for the creation, development and distribution of fragrance and beauty products for Bottega Veneta and Balenciaga, starting upon closing of the announced transaction.
The agreement is valued at €4 billion, and a strategic committee will be established to ensure coordination between Kering brands and L’Oréal.
Exploring the future of wellness and longevity together
Perhaps the most exciting news is that beyond beauty, Kering and L’Oréal are “joining forces to explore business opportunities at the intersection of luxury, wellness and longevity.”
This exclusive partnership will be a 50/50 joint venture and, according to the businesses, “will craft cutting-edge experiences and services combining L’Oréal’s innovation capabilities with Kering’s deep understanding of luxury clients.”
“This strategic alliance marks a decisive step for Kering,” said Luca de Meo, CEO of Kering. “Joining forces with the global leader in beauty, we will accelerate the development of fragrance and cosmetics for our major Houses, allowing them to achieve scale in this category and unlock their immense long-term potential, as did Yves Saint Laurent Beauté under L’Oréal’s stewardship. Together, we will also venture into new frontiers of wellness, combining the unrivalled expertise of L’Oréal with our unique luxury reach. This partnership allows us to focus on what defines us best: the creative power and desirability of our Houses.”
Nicolas Hieronimus, CEO of L’Oréal Groupe, said the partnership will allow the businesses “to explore new avenues in wellness together.”
“The addition of these extraordinary brands perfectly complements our existing portfolio and significantly expands our reach into new, dynamic segments of luxury beauty. Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market. Gucci, Bottega Veneta and Balenciaga are all exceptional couture brands with enormous potential for growth,” he said.
