PARIS, France - French luxury group Kering is selling its beauty products business including its leading perfume brand Creed to cosmetics giant L'Oreal in a deal worth $4.6 billion, the companies said Sunday.
Kering, owner of luxury handbag-maker Gucci, and the French grooming giant said in a joint statement they were "entering a long-term strategic partnership in luxury beauty and wellness".
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Under the deal, L'Oreal will acquire Kering's beauty products division including Creed, they added.
They valued the deal at four billion euros overall, subject to regulation, with payment expected in the first half of 2026.
"Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market," said L'Oreal chief executive Nicolas Hieronimus in the statement.
The companies said the partnership "includes the rights to enter into a 50-year exclusive license for the creation, development, and distribution of fragrance and beauty products for Gucci" after the current license expires.