L'Oreal Plans $4.6B Acquisition of Kering's Creed and 50-Year Brand Licenses

French cosmetics giant L'Oreal is acquiring Kering's beauty division, including the high-end perfume brand Creed, for approximately $4.6 billion, marking L'Oreal's largest deal to date. The acquisition includes 50-year exclusive licenses to develop and distribute beauty and personal care products under Kering's luxury fashion houses Gucci, Bottega Veneta, and Balenciaga, with L'Oreal set to take over the Gucci license once the current agreement with Coty expires in 2028. This move is part of Kering's new CEO Luca de Meo's strategy to reduce the company's significant debt and refocus on its core fashion business, as Kering has experienced declining profits and revenue. The partnership also includes plans for a 50/50 joint venture exploring opportunities in luxury, wellness, and longevity sectors. For L'Oreal, acquiring Creed strengthens its position in the niche fragrance market, complementing its portfolio and expanding its reach into luxury beauty segments. The deal reflects a strategic pivot by Kering to divest from beauty and allow L'Oreal to lead future beauty launches and brand extensions linked to some of the world's most recognized luxury fashion names.