"Kering SA agreed to sell its beauty division to L'Oreal SA as part of a long-term strategic alliance, with Chief Executive Luca de Meo seeking to turn around the French luxury giant's fortunes. The owner of fashion brands including Gucci said the deal aims to accelerate growth, according to a statement issued by both companies on Sunday night. The deal is valued at €4 billion ($4.7 billion), according to the statement."
"Kering launched its beauty division in 2023. The company acquired high-end fragrance label Creed that year for an estimated €3.5 billion to build its beauty platform, but it has been dealing with more pressing issues ever since. As part of the deal, L'Oreal, the world's biggest dedicated cosmetics and beauty player, would add Creed to its portfolio."
""Joining forces with the global leader in beauty, we will accelerate the development of fragrance and cosmetics for our major houses, allowing them to achieve scale in this category and unlock their immense long-term potential," de Meo said in the release."
Kering agreed to sell its beauty division to L'Oreal in a long-term strategic alliance valued at €4 billion. The transaction transfers Creed to L'Oreal after Kering launched its beauty division in 2023 and acquired Creed for an estimated €3.5 billion to build a beauty platform. The move aims to accelerate fragrance and cosmetics development for Kering's major houses and help them achieve scale. The sale is the first strategic action by Chief Executive Luca de Meo since taking the role amid a slump in Chinese demand, potential higher US tariffs, and investor concern over high debt. The Pinault family remains majority shareholder with a 42% stake and 59% of voting rights.
Read at Fortune
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