Kering Nears $4 Billion Sale of Its Beauty Division to L’Oréal

French luxury group Kering is reportedly in the final stages of negotiations to sell its beauty division to cosmetics giant L’Oréal, in a deal valued at around $4 billion (€4 billion), according to people familiar with the matter.

The transaction would transfer ownership of Creed, the niche fragrance house acquired by Kering in 2023, along with the rights to produce and market beauty lines for Balenciaga, Alexander McQueen, and Bottega Veneta.

The move is part of a strategic overhaul led by Kering’s newly appointed CEO, Luca de Meo, who aims to reduce debt, strengthen liquidity, and refocus operations on core fashion and accessories businesses. Kering currently holds an estimated €9.5 billion in net debt and has faced investor pressure due to declining sales across flagship brands like Gucci.

Kering’s beauty arm, launched in 2023, was designed to internalize fragrance and cosmetics operations previously managed through licensing. Yet, performance has been below expectations. Selling the division would allow the company to streamline and double down on its most profitable maisons.

For L’Oréal, the acquisition represents a bold move into the ultra-luxury segment, enriching its portfolio with iconic heritage labels and expanding its storytelling capabilities in high-end beauty.

“The transaction reflects a clear convergence between fashion heritage and beauty innovation — where emotional connection is now the ultimate form of luxury,” notes LUXONOMY.

Industry implications:

• Kering: gains liquidity, reduces leverage, and sharpens brand focus.
• L’Oréal: deepens presence in prestige beauty and reinforces its dominance at the top of the luxury pyramid.
• Sector: signals ongoing consolidation between fashion and cosmetics powerhouses.

If finalized, the deal would stand among the most significant luxury transactions of 2025, redrawing the boundaries between the worlds of couture and cosmetics.