L'Oréal Officially Acquires Kering Beauté for $4.6 Billion USD

Summary

• L’Oréal has officially completed its acquisition of Kering Beauté in a massive €4 billion EUR cash deal following regulatory approval

• The historic transaction includes the House of Creed alongside exclusive 50-year licenses to develop and distribute beauty and fragrance products for Balenciaga and Bottega Veneta

• L’Oréal has also secured the rights to a 50-year license for Gucci, which will take effect following the expiration of the brand’s current agreement with Coty

The beauty landscape is officially shifting. Following recent approval from competition authorities, French beauty giant L’Oréal has officially finalized its acquisition of Kering Beauté in a massive €4 billion (approximately $4.64 billion USD) cash deal. Marking L’Oréal’s largest acquisition to date, the strategic partnership heavily expands the conglomerate’s luxury portfolio while setting up a massive new chapter for Kering‘s iconic fashion houses.

The finalized agreement officially hands over Kering Beauté—including the luxury fragrance brand House of Creed. Furthermore, the massive deal secures exclusive 50-year licenses for L’Oréal to create, develop, and distribute beauty and fragrance products for Balenciaga and Bottega Veneta. As previously announced, L’Oréal has also secured the rights to a 50-year exclusive license agreement for Gucci, which will officially begin upon the expiration of the brand’s existing license with Coty.

“On behalf of the Group, I am delighted to welcome these extraordinary brands into the L’Oréal family,” stated Nicolas Hieronimus, CEO of L’Oréal Group. “This significant new milestone in our strategic partnership with Kering reinforces our position as the world’s number one in both beauty and luxury beauty. We will now work together, over the next fifty years, to write the next chapter of these iconic brands, to unlock their immense growth potential.”

The historic sale arrives as Kering seeks to stabilize its balance sheet following a reported 13% decline in revenue for its full-year 2025 results. Kering CEO Luca de Meo noted that leveraging L’Oréal’s unmatched expertise will open a “new phase of acceleration” for its brands, allowing the fashion houses to fully realize their potential in the highly lucrative cosmetics and fragrance categories.

Beyond the immediate licensing agreements, the two companies have also confirmed they are continuing to explore development opportunities in the emerging fields of wellness and longevity through a new joint venture.

The monumental acquisition surpasses L’Oréal’s 2023 purchase of Aesop for $2.5 billion USD, officially making it the conglomerate’s largest deal in history.