French multinational holding company specialising in luxury goods Kering and French multinational personal care company L’Oréal have announced that they are entering a long-term strategic partnership in luxury beauty and wellness. This binding agreement encompasses the acquisition of the House of Creed by L’Oréal, the beauty and fragrance licences of iconic Houses of Kering and an exclusive venture to explore business opportunities in the field of wellness and longevity.

Under the terms of this agreement, Kering has the right to sell Kering Beauté, including the House of Creed to L’Oréal. As part of L’Oréal Luxe, Creed will be best positioned to accelerate even further its global development across both men’s and women’s markets.

The partnership includes the rights to enter into a 50-year exclusive licence for the creation, development, and distribution of fragrance and beauty products for Gucci, commencing after expiration of the current licence with Coty, and respecting the Kering group’s obligations as per the existing licence agreement.

Kering will also grant L’Oréal 50-year exclusive licences for the creation, development, and distribution of fragrance and beauty products for Bottega Veneta and Balenciaga, starting upon closing of the announced transaction.

A strategic committee will be established to ensure coordination between Kering brands and L’Oréal and monitor the progress of the partnership.

The agreement, including the sale of Creed and the establishment of these 50-year licences on these iconic Houses of Kering, is valued at €4 billion, payable in cash at closing, expected in the first half of 2026. L’Oréal will also pay royalties to Kering for the use of its licensed brands.

Beyond beauty, Kering and L’Oréal are joining forces to explore business opportunities at the intersection of luxury, wellness, and longevity. This exclusive partnership, in the form of a planned 50/50 joint venture, will craft cutting-edge experiences and services combining L’Oréal’s innovation capabilities with Kering’s deep understanding of luxury clients.

For more information, visit kering.com.