L’Oréal has completed its acquisition of Kering Beauté, including fragrance house Creed, and signed 50-year exclusive licenses for Bottega Veneta and Balenciaga beauty lines. The deal positions L’Oréal to expand in luxury fragrance while Kering retains optionality for Gucci and a wellness joint venture.
L’Oréal has finalized its acquisition of Kering Beauté, which includes the Creed luxury fragrance house, alongside the execution of 50-year exclusive licensing agreements for the development and distribution of fragrance and beauty products under the Bottega Veneta and Balenciaga brands. The transaction follows terms initially outlined in October 2025, according to company disclosures. For the Gucci brand, L’Oréal will obtain rights to enter a separate 50-year exclusive license upon the expiration of the existing license held by Coty, in accordance with Kering’s current contractual obligations. The two companies also continue to explore a joint venture focused on wellness and longevity opportunities.
The deal reshapes the luxury beauty landscape by transferring control of three significant fashion-linked fragrance portfolios—Creed, Bottega Veneta, and Balenciaga—to L’Oréal’s luxury division. For L’Oréal, the acquisition strengthens its position in the high-margin prestige fragrance segment, where Creed commands a dedicated customer base and established distribution. For Kering, the transaction aligns with its strategy to focus on core fashion brands while securing long-term royalty streams through licensing arrangements.
Competitors in the luxury beauty sector, including Estée Lauder, Puig, and LVMH’s beauty division, may face intensified rivalry as L’Oréal expands its portfolio of designer fragrance licenses. The 50-year term of the agreements provides long-term stability for brand development and supply chain investment. The pending Gucci license transition, once Coty’s term concludes, will represent a further significant shift in the prestige beauty market.
L’Oréal is a French multinational personal care company and the world’s largest cosmetics group.
Kering is a global luxury group headquartered in Paris, managing a portfolio of fashion, leather goods, and jewelry brands.
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