The French Kering Group and the L'Oréal Group have announced a long-term partnership in the luxury beauty and wellness sector. The move is considered one of the most significant collaborations in the beauty sector in recent years. The focus is on L'Oréal's acquisition of Kering Beauté, including the historic fragrance house Creed and exclusive licensing rights for fragrances and cosmetics from the Gucci, Bottega Veneta and Balenciaga brands, the companies announced. The transaction volume amounts to around four billion euros, with L'Oréal also paying licence fees to Kering. The transaction is expected to be completed in the first half of 2026.

New momentum for fragrance and wellness

"I am delighted about this long-term strategic alliance with one of the world's most renowned, creative and visionary luxury groups," said Nicolas Hieronimus, CEO of the L'Oréal Group. The partnership is intended to further consolidate the company's position as the world's leading luxury beauty company and open up new avenues in the wellness sector. "With Creed, we are establishing ourselves as one of the leading providers in the growing niche market for fragrances." Gucci, Bottega Veneta and Balenciaga are exceptional couture brands with enormous growth potential. Creed will thus become part of the L'Oréal Luxe portfolio and position itself for global expansion in the luxury perfume segment. In addition, beauty ranges are to be created for Kering's fashion houses. The two groups are also establishing a joint venture with a 50-50 stake to develop new business areas in the field of wellness and longevity.

Trend towards integrated luxury worlds

The publicly traded Kering Group is considered one of the world's largest luxury companies. It owns a number of international fashion, sports and accessory brands as well as renowned jewellery manufacturers. "By joining forces with the global market leader in the beauty sector, we will accelerate the development of fragrances and cosmetics for our major houses," says Luca de Meo, CEO of Kering. The new alliance reflects an industry trend in which luxury brands are increasingly expanding their activities beyond fashion and fragrances to holistic wellness concepts, it said. The partnership also strengthens L'Oréal's scientific and brand strategy base in the high-price segment, while Kering gains financial leeway for its fashion houses.

Source: L'Oréal