Gucci owner Kering has agreed to sell its beauty business to L’Oréal for $4.66 billion, the company announced on Sunday. This move comes as the new CEO, Luca de Meo, aims to tackle the luxury group’s high debt and refocus on its core fashion business.
Under the deal, French beauty giant L’Oréal will acquire Kering’s fragrance line Creed, as well as the rights to develop products under Kering’s fashion labels Bottega Veneta and Balenciaga through a 50-year exclusive license.
The sale marks a significant step toward reducing Kering’s net debt, which stood at $10.5 billion at the end of June. This debt figure adds to $7 billion in long-term lease liabilities, a combination that has raised concerns among investors.
Kering has been struggling to reverse declining growth at its largest brand, Gucci, which has been hit hard by slowing demand in the key Chinese market. The partnership with L’Oréal is expected to help Kering streamline its focus and strengthen its financial position moving forward.
https://nypost.com/2025/10/19/business/kering-to-sell-beauty-unit-to-loreal-for-4-66-billion/
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