Updated 5 p.m. ET on March 31
Kering and L’Oréal have officially tied the knot on their 4 billion-euro beauty deal following approval from competition authorities, the two companies said Tuesday.
The finalized agreement confirms L’Oréal’s acquisition of Kering Beauté, including the House of Creed, and the signing of beauty and fragrance licenses for the Kering brands.
In addition to this, the deal gives L’Oréal the rights to enter into a 50-year exclusive license for the creation, development and distribution of fragrance and beauty products for Gucci, commencing after the expiration of Kering’s current license with Coty for that business.
L’Oréal and Kering also said they are continuing to explore opportunities in wellness and longevity through a joint venture.
Stephan Bezy is now leading the former Kering Beauté brands, which are integrated into the L’Oréal Luxe portfolio, according to his LinkedIn profile. Bezy’s new title is brand president, new luxury brands.
“I have immense admiration and respect for the heritage of these exceptional brands, and for their unique savoir-faire of the teams behind them,” he wrote in a LinkedIn post. “Combined with L’Oréal Luxe’s expertise in beauty and innovation DNA, we have what it takes to keep winning, deliver unmatched experiences to our consumers and reach new heights together.”
Over the past 14 years, Bezy has steered Yves Saint Laurent Beauté, which is among L’Oréal’s billionaire brands today.
Regarding the L’Oréal-Kering deal, Luca de Meo, Kering chief executive officer, said in the statement: “By leveraging L’Oréal’s unmatched expertise in the beauty sector, we are opening a new phase of acceleration for the development of fragrances and cosmetics for our houses, among the most iconic in the world. This long-term partnership will enable us to fully realize their potential in this category.”
Nicolas Hieronimus, CEO of L’Oréal, added: “Building on the success of Yves Saint Laurent Beauté over the past 20 years, this significant new step in our strategic partnership with Kering allows us to strengthen our position as the world leader in beauty and luxury beauty, and to write a new chapter together for these iconic brands over the next 50 years, in order to unlock their immense growth potential.”
As part of the deal, L’Oréal will pay royalties to Kering for the use of the licensed brands.
As previously reported, beauty’s playing field is shape-shifting like never before six months after L’Oréal and Kering revealed they were entering into a joint venture, giving L’Oréal, the world’s largest beauty company, even more muscle in the global industry.
That includes the Estée Lauder Cos. and Puig being in talks to merge their businesses. The Lauder portfolio includes Estée Lauder, Clinique, Deciem, Bobbi Brown and Tom Ford, among others. Puig’s portfolio includes the fragrance and fashion brands Rabanne, Carolina Herrera, Jean Paul Gaultier, Nina Ricci and Dries Van Noten. There’s also Charlotte Tilbury, plus niche fragrance brands such as Byredo, Penhaligon’s and L’Artisan Parfumeur, as well as a dermocosmetics activity.
