L’Oréal will take over Kering’s beauty portfolio, including the prestige fragrance maker Creed it acquired in 2023 for $3.8 billion, and the rights to make beauty lines for its fashion house brands, the companies announced on Sunday.
This includes the license to make Gucci beauty when its current agreement with Coty expires, which is believed to be in 2028. The companies will also launch what they have described as a “50-50 joint venture” to explore business opportunities in beauty and wellness.
“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,” Kering chief executive Luca de Meo said in a statement. “This partnership allows us to focus on what defines us best: the creative power and desirability of our houses.”