Kering and L’Oréal have completed their previously announced strategic partnership in beauty, closing a €4 billion deal that strengthens L’Oréal’s dominance in the global cosmetics market.
The agreement includes L’Oréal’s acquisition of Kering Beauté—along with fragrance house Creed—and long-term licenses to develop beauty and fragrance lines for several of Kering’s luxury brands. L’Oréal will also pay ongoing royalties to Kering. The €4 billion were paid in cash today.
Kering CEO Luca de Meo said the partnership will accelerate growth by leveraging L’Oréal’s expertise in research, production, and global distribution. L’Oréal CEO Nicolas Hieronimus highlighted the success of Yves Saint Laurent Beauté as a model for scaling Kering’s brands over the long term.
The move reflects broader shifts in the beauty industry, now valued at more than $600 billion globally, where luxury players are increasingly turning to partnerships to drive growth. Kering had previously built its beauty division, including the acquisition of Creed in 2023, but is now pivoting toward an asset-light model. The Kering Beaute division had also been introduced in 2023.
The deal also comes amid ongoing consolidation in the sector, including market speculation around closer ties between Estée Lauder and Puig, as companies seek scale and global reach.
Kering and L’Oréal said they will also explore a joint venture in wellness and longevity, signaling potential expansion beyond traditional beauty categories.
