The beauty industry is entering a new phase. After receiving approval from regulators, L’Oréal has completed its acquisition of Kering Beauté in a €4 billion (around $4.64 billion) all-cash deal. It stands as the largest acquisition in the company’s history, significantly strengthening its presence in the luxury segment and opening a new era for Kering’s portfolio of fashion houses.

As part of the agreement, L’Oréal takes control of Kering Beauté, including the fragrance house Creed. The deal also grants L’Oréal exclusive 50-year licenses to develop, produce, and distribute beauty and fragrance lines for Balenciaga and Bottega Veneta. In addition, the company has secured a similar long-term agreement for Gucci, which will come into effect once the brand’s current partnership with Coty concludes.

Nicolas Hieronimus, CEO of L’Oréal, described the move as a defining moment for the group, highlighting the addition of globally recognized brands and the opportunity to shape their future in beauty over the coming decades. The partnership further cements L’Oréal’s leadership across both the beauty and luxury sectors.

For Kering, the sale comes at a time of financial recalibration, following a reported 13% drop in annual revenue for 2025. CEO Luca de Meo emphasized that aligning with L’Oréal’s expertise will help accelerate growth and fully unlock the potential of its brands within the highly competitive cosmetics and fragrance markets.

Looking ahead, both companies are also exploring opportunities beyond traditional beauty, with plans to collaborate on initiatives tied to wellness and longevity through a newly formed joint venture.

The scale of the deal surpasses L’Oréal’s 2023 acquisition of Aesop, making it the most significant transaction in the company’s history.

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