Kering in Talks to Sell Beauty Unit to L’Oréal in $4 Billion Deal
Kering SA is negotiating the sale of its beauty business to L’Oréal SA for approximately $4 billion, as reported by The Wall Street Journal. The deal, which could be finalized next week barring last-minute complications, marks a strategic pivot for Kering under new CEO Luca de Meo.
The French luxury group launched its beauty division in 2023 to expand in-house production of perfumes and cosmetics, acquiring high-end fragrance house Creed that same year. However, slowing Gucci sales in China and Saint Laurent's U.S. market struggles have pressured Kering's balance sheet, with net debt reaching nearly $11 billion as of June 30.
For L’Oréal, the acquisition WOULD bolster its luxury portfolio with Creed while creating opportunities to develop beauty products tied to Kering's fashion brands. The Paris-based cosmetics giant already owns mass-market labels like Maybelline New York and L’Oréal Paris.
