L’Oreal buys Kering’s beauty unit for $4.3B

French cosmetics giant L’Oreal announced Sunday it will acquire Kering’s luxury cosmetics business for about $4.3 billion, marking one of the largest deals in the beauty industry this year. 

The agreement includes a 50-year licensing partnership for Gucci, Bottega Veneta, and Balenciaga beauty lines, and the full acquisition of Creed, Kering’s high-end fragrance brand known for its cult favorite, Aventus.

The deal expands L’Oreal’s dominance in the luxury beauty market, where it already manages brands like Lancome, Yves Saint Laurent Beauty, and Giorgio Armani Beauty. 

With $46 billion in 2024 revenue, L’Oreal aims to strengthen its foothold in the fast-growing niche fragrance and wellness sectors.

Kering, which owns Gucci, Saint Laurent, and Alexander McQueen, generated $18 billion last year but has struggled to revive Gucci sales. The sale helps the company cut $10 billion in debt and refocus on its core fashion and leather goods.

Both firms will also form a 50/50 joint venture to develop wellness and longevity products.