L’Oreal is adding more glamour to its name with the acquisition of Kering’s beauty arm, which includes star brand Gucci.
Luxury conglomerate Kering and global beauty group L’Oreal are out to reshape the beauty landscape starting 2026. On Sunday, the companies announced that Kering is selling its entire beauty portfolio, including the license for fashion house Gucci, to L’Oreal for 4 billion euros ($4.66 billion).
The move is a step toward reducing Kering’s debt and refocusing on its core fashion business, all while cementing L’Oreal’s status as the world’s no. 1 beauty company—a position it has held for multiple years and reinforced in its 2023 and 2024 financial reports.
The deal grants L’Oreal acquisition of high-end fragrance house Creed, which Kering’s former CEO Francois-Henri Pinault acquired in 2023 for 3.5 billion euros. This immediately established the beauty giant as a leading player in the niche fragrance market. The current deal gives L’Oreal exclusive rights to create, develop, and distribute fragrance and beauty products for Kering Beauté’s flagship luxury brands, such as Bottega Veneta, Balenciaga, and McQueen for 50 years.
On the same note, L’Oreal is also getting the license for star brand Gucci once Kering’s deal with Coty expires in what analysts believe to be in 2028. On top of that, Kering and L’Oreal plan to launch a “50-50 joint venture” which explores business opportunities in both the beauty and wellness sectors.
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The all-cash transaction is expected to close in the first half of 2026 and if successfully carried through, this will mark a milestone for L’Oreal. Kering Beauté will be its biggest acquisition by far, following Australian beauty brand Aesop, which it purchased from Natura & Co. for $2.5 billion in 2023.
And although Kering Beaute’s sell-off was a shock to the public—especially because it comes only two years since the fashion group established it in 2023—it was not a bolt from the blue. The idea of selling it was already an option even before Pinault, whose family owns the conglomerate, stepped down as CEO in June 2025. It aims to reduce Kering’s net debt of 9.5 billion euros, on top of six billion euros in long-term lease liabilities, at the end of June 2025. At the same time, it makes for a significant start for CEO Luca de Meo, who just took the helm on Sept. 15, 2025.
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“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,” 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.”
L’Oreal CEO Nicolas Hieronimus meanwhile called the acquisition a move that will “further solidify our position as the world’s #1 luxury beauty company.” The company was founded by by chemist Eugène Schueller with the development of the world’s first hair dye in 1909. Now with 37 international brands under its roof, L’Oreal has been the world’s leader in consumer hair, beauty, and health products for decades. In 2024 alone, the French beauty giant generated sales amounting to 43.48 billion euros from over 150 countries all over the world.
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