Gucci owner sells his cosmetics business to L'Oreal for 4 billion euros
Photo: EPA

L'Oreal, the world's largest manufacturer of decorative cosmetics, has bought Kering's cosmetics business for 4 billion euros. About this company reported in a joint statement on Monday, October 20.

The fact that the Kering group of companies, which owns such brands as Gucci, Balenciaga and Yves Saint Laurent, is negotiating the sale of its cosmetics division to the French company L'Oreal, was the first reported The Wall Street Journal.

According to the publication's sources, the deal, which may be announced next week, is worth $4 billion. The information was confirmed by Financial Times і Bloomberg. Sources from both publications estimate the deal at €4 billion.

The sale was one of the first major steps of Kering's new CEO Luca de Meo, who had previously was the head of Renault and took up his new position only a month ago.

The deal will allow Kering to reduce its debt burden, which stood at about $11 billion by the end of June, and focus on reviving key brands, especially Gucci, which has been facing a drop in sales in China.

For its part, L'Oreal, the world's largest cosmetics player, will acquire the Creed perfume brand and will receive the rights to develop new cosmetic lines related to Kering, as well as Bottega Veneta, Balenciaga, and Alexander McQueen.

Kering, a company controlled by by the Pinot family – one of the richest women in France, launched its cosmetics division in 2023 when it acquired the Creed brand for €3.5 billion in cash.

Until September 2025, François-Henri Pinault was the CEO of the luxury group. The Pinault family is the majority shareholder of Kering, owning 42% of the shares and 59% of the voting rights.

The Pinot clan is also the largest shareholder (29%) german sports brand Puma. In September, Bloomberg wrote that the company's owners were considering options for its development, including a sale.

UPDATED on October 20. Agreement provides forl'Oréal will receive the Creed perfume brand, as well as exclusive 50-year licenses to create fragrances and cosmetics under the Gucci, Bottega Veneta and Balenciaga labels.

Coty's current license for Gucci fragrances will be valid until 2028.

Upon completion of the transaction, which is expected in the first half of next year, Kering will receive EUR 4 billion in cash and royalties from L'Oreal.

L'Oréal already has a successful experience of cooperation with Kering: in 2008, it obtained the rights to produce Yves Saint Laurent perfumes.