Kering to Sell Creed, License Fragrance Brands to L'Oreal in $4.7 Billion Deal
By Aimee Look
Kering agreed to sell cologne-making brand House of Creed and license fragrance rights for labels such as Gucci and Balenciaga to L'Oreal in a deal valued at 4 billion euros ($4.66 billion) in cash.
The deal marks an early move by Kering's new chief, Luca de Meo, to revive the French luxury giant's fortunes, allowing it to focus on luxury fashion while bolstering L'Oreal's exposure to the higher end of the beauty market.
The companies disclosed the three-pronged deal late Sunday, a day after The Wall Street Journal reported that Kering was in talks to sell its beauty business to L'Oreal.
Under the deal, French beauty giant L'Oreal will acquire the Creed brand and get exclusive rights to develop fragrance and beauty products for Kering brands Gucci, Bottega Veneta and Balenciaga for 50 years, the companies said. The Gucci license is due to start once an existing license with Coty expires, they added.
The purchase of Creed, and the 50-year licensing deals are valued around 4 billion euros payable in cash, and are expected to commence in the first half of 2026, subject to regulatory approvals, the companies said.
L'Oreal and Kering also formed a 50-50 joint venture for new business opportunities in longevity, wellness and luxury, they said.
Kering launched its beauty arm in 2023, and it clinched an all-cash deal for Creed in the summer of that year. Meanwhile, its core luxury business has struggled, hit by stagnant sales in China at its Gucci brand, and a slowdown in its wholesale business and the U.S. market for its Saint Laurent label.
Write to Aimee Look at aimee.look@wsj.com
(END) Dow Jones Newswires
October 20, 2025 02:14 ET (06:14 GMT)
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