Kering (PPRUY) and L’Oreal (LRLCY) announced that they are entering a long-term strategic partnership in luxury beauty and wellness. This binding agreement encompasses the acquisition of the House of Creed by L’Oreal, the beauty and fragrance licenses of Houses of Kering and an exclusive venture to explore business opportunities in the field of wellness and longevity. Under the terms of this agreement, Kering has the right to sell Kering Beaute including the House of Creed to L’Oreal. 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, commencing after expiration of the current license with Coty, and respecting the Kering group’s obligations as per the existing license agreement. The agreement, including the sale of Creed and the establishment of these 50-year licenses on these Houses of Kering, is valued at EUR 4 billion, payable in cash at closing, expected in the first half of 2026. L’Oreal will also pay royalties to Kering for the use of its licensed brands.
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