Kering and L’Oréal have announced that they are entering a long-term strategic partnership in luxury beauty and wellness, worth $4.66 billion.
The binding agreement encompasses the acquisition of the House of Creed by L’Oréal, the beauty and fragrance licenses of Houses of Kering and an exclusive venture to explore business opportunities in the field of wellness and longevity.
In a joint statement, Luca de Meo, CEO of Kering told investors, “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, as did Yves Saint Laurent Beauté under L’Oréal’s stewardship. Together, we will also venture into new frontiers of wellness, combining the unrivalled expertise of L’Oréal with our unique luxury reach. This partnership allows us to focus on what defines us best: the creative power and desirability of our Houses.”
Nicolas Hieronimus, CEO L’Oréal Groupe stated, “I am delighted to forge this long-term strategic alliance with one of the world’s most prestigious, creative and visionary luxury groups. This partnership will further solidify our position as the world’s #1 luxury beauty company and allow us to explore new avenues in wellness together.”
Moving forward, Hieronimus concluded, “The addition of these extraordinary brands perfectly complements our existing portfolio and significantly expands our reach into new, dynamic segments of luxury beauty. Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market. Gucci, Bottega Veneta and Balenciaga are all exceptional couture brands with enormous potential for growth.”
Kering beauty will be L’Oreal’s largest acquisition to date.
Shares in Kering jumped 4.7% while L’Oreal shares surged 1.4% following the announcement.
By CEO NA Editorial Staff
