Gucci Owner Sold His Cosmetics Business for 4 Billion Euros 0 11

The Wall Street Journal reported that the Kering group, which owns brands such as Gucci, Balenciaga, and Yves Saint Laurent, is in negotiations to sell its cosmetics division to the French company L'Oreal.

According to sources from the publication, the deal, which could be announced as early as next week, is valued at $4 billion.

The sale marks one of the first major steps taken by Kering's new CEO, Luca de Meo, who previously led Renault and took on his new role just 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, primarily Gucci, which has faced declining sales in China.

The agreement stipulates that L'Oreal will acquire the fragrance brand Creed, as well as exclusive 50-year licenses to create fragrances and cosmetics under the Gucci, Bottega Veneta, and Balenciaga labels.

The current license for Gucci fragrances, held by Coty, is valid until 2028. Upon completion of the deal, expected in the first half of next year, Kering will receive 4 billion euros in cash, as well as royalties from L'Oreal.

L'Oreal already has a successful track record of collaboration with Kering: in 2008, it obtained the rights to produce Yves Saint Laurent perfumes.

The Kering company, controlled by the Pinault family – one of the wealthiest in France, launched its cosmetics division in 2023 when it acquired the Creed brand for 3.5 billion euros in cash.

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

The Pinault clan is also the largest shareholder (29%) of the German sports brand Puma. In September, Bloomberg reported that the company's owners are considering options for its development, including a sale.