Kering, who owns the fashion house Gucci, has entered into a strategic partnership with L’Oréal, which includes the sale of its beauty business as part of a long-term collaboration.
The deal, valued at €4 billion, includes the acquisition of Creed by L’Oréal, the beauty and perfume licenses of the Kering fashion houses, and an exclusive collaboration to “explore business opportunities in wellness and longevity.”
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Kering stated that the partnership gives the right to enter into a 50-year exclusive license for the creation, development and distribution of Gucci perfumes and beauty products after the current agreement with Coty expires.
The company will also grant L’Oréal 50-year exclusive licenses for the creation, development and distribution of perfume and beauty products for Bottega Veneta and Balenciaga.
A strategic committee will be established to ensure coordination between Kering brands and L’Oréal and to monitor the progress of the partnership.
Luca de Meo, CEO of Kering, said: “By joining forces with the global leader in beauty, we will accelerate the development of perfume and cosmetics for our major fashion houses, allowing them to achieve scale in this category and unlock their enormous long-term potential, as Yves Saint Laurent Beauté did under L’Oréal’s leadership.
“Together, we will also venture into new fronts in wellness, combining L’Oréal’s unrivalled expertise with our unique luxury range. This partnership allows us to focus on what defines us best: the creative power and attractiveness of our fashion houses.”
Nicolas Hieronimus, CEO of L’Oréal Groupe, said: “This partnership will further strengthen our position as the world’s premier luxury beauty company and will allow us to explore new avenues in wellness together.
“Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche perfume market. Gucci, Bottega Veneta and Balenciaga are all outstanding haute couture brands with enormous growth potential.”
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