Back to today’s briefing

Story perspectives

Kering Sells Beauty Division to L'Oréal for €4 Billion

10/20/2025

43 8 Full Breakdown

Summary

Story summary

Kering S.A. has agreed to sell its beauty division to L’Oréal S.A. for €4 billion, including the Creed brand and 50-year licenses for Gucci, Bottega Veneta, and Balenciaga.
The deal aims to reduce Kering’s €9.5 billion debt and refocus on core fashion amid Gucci’s declining sales.
The transaction is expected to close in the first half of 2026 and will be L’Oréal’s largest acquisition to date.

History

Historical Context

In 2019, L’Oréal S.A. acquired Valentino for €1.4 billion, expanding its luxury portfolio amid a trend of consolidation in the beauty sector. Kering S.A. sold its beauty division for €4 billion to L’Oréal, driven by Gucci's declining sales and Kering's €9.5 billion debt. This reflects the financial pressures luxury brands face in adapting to shifting consumer preferences.

1 of 2

Story summary

Kering S.A. has agreed to sell its beauty division to L’Oréal S.A. for €4 billion, including the Creed brand and 50-year licenses for Gucci, Bottega Veneta, and Balenciaga.
The deal aims to reduce Kering’s €9.5 billion debt and refocus on core fashion amid Gucci’s declining sales.
The transaction is expected to close in the first half of 2026 and will be L’Oréal’s largest acquisition to date.

1 / 2