On 19 October 2025 an agreement was reached between the luxury group Kering and the multinational company L'Oréal. A statement announced the sale to the French giant of the group's beauty division, including the brand House of Creed, together with the granting of exclusive licences lasting 50 years to create, develop and distribute fragrances and beauty products of the Gucci, Bottega Veneta and Balenciaga brands. L'Oréal will pay royalties to Kering for the use of these licenses.

The agreement reached has a value of 4 billion euros, payable in cash to the closing of the transaction, previewed in the first half of 2026.

The Parties to the Agreement

Originally, the Kering Group was founded in 1962 by François Pinault's idea of creating a company that trades construction timber under the name of Pinault Group. Subsequently, in 1988, after its listing on the Stock Exchange in Paris, it acquired Le Printemps and a shareholding in La Redoute, and became Pinault Printemps Redoute, thus officially changing the name of the company from Pinault Group to PPR, in 2005.

With the passing of witness from François-Henri Pinault to Serge Weinberg, as President and CEO of PPR, the company is growing increasingly to become a true exponent of global luxury and all this happens thanks to the progressive sale of collateral activities of the group and the acquisition of luxury brands.

In 2013, the company was renamed under the name we know it today, that is, Kering. On September 15, 2025, François-Henri Pinault gave the reins of the group to Luca de Meo, new managing director.

The buyer of this transaction, involving a division of the Kering group and the House of Creed brand, is Lupin Oréal.

Lupène Schueller is a French multinational company specialized in cosmetic and beauty products, founded in 1909 by chemist Eugène Schueller. Towards the end of the 1950s, the company started to expand internationally and to date has more than 23 brands present in each distribution channel, which are recognized as world leaders in their reference sectors.

The Lupin Oréal Group also has four internal divisions: Lupin Oréal Consumer Products, Lupin Oréal Luxe, Lupin Oréal Professional Products and Lupin Oréal Active Cosmetics.

The acquisition of the beauty division and the House of Creed brand

The agreement between Kering and L'Oréal, signed on 19 October 2025, provides for the beginning of a long-term partnership in the world of luxury and beauty.

It is for all intents and purposes a transaction to acquire a branch of the Kering group, through which the French company Lupin Oréal has taken over the beauty division of the multinational company active in the luxury sector and the well-known perfume brand House of Creed. In legal terms, the acquisition transaction consists in the transfer of ownership of one company to another,

The acquisition is normally carried out by the conclusion of a contract for the transfer of shares or shares or a contract for the transfer of a company/branch of a company. In our case, in fact, L'Oréal has acquired sole control of a branch of Kering, in particular of the beauty division and House of Creed, a global player in the fragrance market ofluxury.Thetransfer of ownership takes place at the time of the agreement between the parties, but respecting the necessary formalities. Moreover, if transfers exceed certain turnover thresholds, this type of transaction must be reported to the Italian and European antitrust authorities. In addition, as regards Italy, compliance with the ...Golden Power , through which the Government has the power to examine or block operations that operate in strategic sectors to protect national interests is necessary.

This new partnership between multinational companies has allowed L'Oréal to access new customers, exploit new resources and expand rapidly on the market, but not only. The transaction aims to raise quality standards and innovation in the beauty-luxury sector, offering also greater visibility for Kering products, being L'Oréal known for its partnerships with global retailers. The acquisition allows the beauty division to have a more solid basis to develop the business. All this therefore further consolidates L'Oréal's position in the luxury beauty sector and allows it to expand also in new areas of well-being.

The licenses for the use of the Kering trademarks

The agreement also provides for the fifty-year grant of exclusive licenses for use of trademarks belonging to Kering, specifically Gucci, Bottega Veneta and Balenciaga, on the basis of the payment of royalties. Let's see how this type of contract works and what it involves. The license of use of the trademark is a contract through which the proprietor of the trademark (licenser) is

The licensee is required to comply with certain technical and quality standards set by the licensor in the production and distribution mode.

Through the license entered into with Kering, L'Oréal acquires the right to create, develop and distribute on the market beauty products and perfumes of Gucci, Bottega Veneta and Balenciaga, for a period of 50 years; these trademarks remain the property of Kering, to which L'Oréal will have to pay a fee for use. The license of use of the brand is a very widespread contract, especially in the fashion sector, as it has multiple advantages for both parties: the owner of the brand can exploit it economically without bearing other costs and above all without losing ownership; the licensee, on the other hand, can

The Commission has also taken the view that the Commission's proposal to extend the scope of the Directive to include the use of a new product in the market for the purposes of the Directive, which is not intended to be used as a basis for the application of the principle of equal treatment for men and women.

common advantages: and indeed that between Kering and L'Oréal is a real partnership between the two companies, with common long-term objectives. In fact, in addition to the beauty segment, Kering and L'Oréal will join forces also \ for business opportunities at the intersection of luxury, well-being and long-lasting life  , aiming to create an exclusive partnership, in the form of joint ventures equal to 50%   , to create avant-garde experiences and services.

• This partnership will further strengthen our position as the world's number one luxury beauty company and allow us to explore new ways in the wellness sector together • Nicolas Hieronimus, CEO of the L • Oréal Group, said, adding that through Creed, L • Oréal will become one of the leading players in the rapidly growing niche fragrance market. Gucci, Bottega Veneta and Balenciaga are exceptional couture brands, with enormous growth potential •

The trademarks covered by the licence agreements are in fact . ... and it is certainly the case of Gucci, Bottega Veneta and Balenciaga . As already mentioned, these trademarks are often registered trademarks that have already reached a very high reputation in the market, so high that other parties are willing to pay for them. As already mentioned, these contracts are for consideration: the consideration is defined by the parties and depends on many factors, including the importance and value of the brand. The consideration, usually monetary (may also be non-monetary) can be fixed or variable, through the payment of royalties, i.e. the payment of a percentage on profits obtained from sales or turnover. The latter solution is by far the most widespread, and is also that provided for by Kering and L.

Another essential element of the contract is the duration, which must be predetermined by the parties: the agreements provide that the license granted to L'Oréal will last for a long 50 years. For the Gucci brand, however, the concession of the license will take place at the conclusion of the contract already in force with Coty; for Balenciaga and Bottega Veneta instead began from the date of closing of the transaction, announced on October 19.

Finally, the trademark licence agreement may be exclusive or not exclusive: in the first case only the licensee may use the trademark, while in the second case the proprietor of the trademark retains the right to use it and to grant other licenses for use to other parties.

Kering's licenses to L'Oréal are exclusive: Kering cannot therefore, for the duration of the contract, grant to other users the use of the Gucci, Bottega Veneta and Balenciaga brands for the beauty and fragrance products.

Reasons and consequences of the operation

For Kering, this is the first big move by the new CEO, Luca De Meo, who took the position only from September 2025, with the task of relaunching the group. Kering is in fact going through a crisis: in June he recorded a net debt of 9.5 billion and is having difficulty relaunching the Gucci brand.

Therefore, the €4 billion agreement first brings relief to its cashiers: according to Bernstein analysts, the sale is a bad necessary to reduce the debt and will also allow De Meo to focus his full attention on Gucci's recovery.

On the other hand, according to RBC analysts, the sale would mark a major change in Kering's approach to beauty, as it expands the vertical integration approach that Kering has already successfully used in the field of glasses with Kering Eyewear; a model that should be more profitable and less expensive for the French luxury giant.

Moreover, according to Equita analysts, the agreement increases visibility on the development of beauty licences for Kering brands, considered the proven success of L'Oréal in this sector: L'Oréal in fact already manages for the Kering group the perpetual license of Saint Laurent beauty. De Meo also refers to this, who, after defining the alliance ... a decisive step for Kering, states: ... By joining forces with the global leader of beauty, we can accelerate the development of the fragrance and cosmetics lines of our main maisons, allowing them to acquire an adequate scale and to release all their potential, as already happened for Yves Saint Laurent Beauté under the guidance of L. .. Oréal. As for L. Oréal, the company acquires a business that only in 2024 generated 323 million euros of revenues and that, according to Barclays' estimates, will lead to a free cash flow for 2025 of about 6.7 billion euros. Nicolas Hieronimous, CEO of L. Oréal, said: ... I am excited to start this one.

This agreement further consolidates our position as a world leader in luxury beauty and allows us to explore new opportunities in the field of well-being. The integration of extraordinary brands such as Creed, Gucci, Bottega Veneta and Balenciaga strengthens our portfolio and significantly expands our presence in dynamic segments and high potential of luxury beauty. The transaction was also welcomed by the Paris Stock Exchange: after the announcement both Kering and L'Oréal had a rise, respectively of 4.92% and .

 

The acquisition of the Kering beauty division, including the House of Creed brand, and the granting of exclusive licences by L'Oréal, represents a strategic move for both parties of the agreement. On the one hand, it allows L'Oréal to consolidate its position as a world leader in the beauty-luxury sector and to exploit new resources, strengthening the foundations of the beauty division; on the other hand, it marks an important change of approach in the beauty sector by the Kering group.