French luxury goods company Kering is selling its beauty division to L’Oreal for 4 billion euros. L’Oreal will acquire House of Creed and licenses to create products for Kering brands like Gucci. The companies plan to establish a strategic committee for coordination and explore joint business opportunities in the wellness market.

L’Oreal previously acquired the beauty license for Kering’s Yves Saint Laurent brand in 2008. Kering’s CEO believes the deal will combine L’Oreal’s expertise with Kering’s luxury reach. The goal is to accelerate fragrance and cosmetics development for major houses and unlock long-term potential, similar to Yves Saint Laurent Beauté.

L’Oreal’s CEO sees potential in Creed’s growth in niche fragrances and the growth opportunities for Gucci, Bottega Veneta, and Balenciaga. The all-cash deal is set to close in the first half of 2026, with L’Oréal paying royalties to Kering for the use of its licensed brands.

Read more at Yahoo Finance: Kering sells beauty division to L’Oreal and says the companies will collaborate on wellness products