{"id":44462,"date":"2025-10-19T11:38:32","date_gmt":"2025-10-19T11:38:32","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/10\/19\/kering-in-talks-to-sell-beauty-business-to-loreal-for-4b-report\/"},"modified":"2025-10-19T11:38:32","modified_gmt":"2025-10-19T11:38:32","slug":"kering-in-talks-to-sell-beauty-business-to-loreal-for-4b-report","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/10\/19\/kering-in-talks-to-sell-beauty-business-to-loreal-for-4b-report\/","title":{"rendered":"Kering in talks to sell beauty business to L\u2019Or\u00e9al for $4B: report"},"content":{"rendered":"
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Kering SA, the French luxury conglomerate and parent company of Gucci, is in advanced discussions to sell its beauty division to L\u2019Or\u00e9al in a deal that could value the unit at approximately $4 billion, reported WSJ, citing sources familiar with the matter. <\/p>\n

The transaction could be announced as early as next week, provided negotiations conclude smoothly and no rival bidder intervenes.<\/p>\n

The prospective deal comes just weeks after Kering\u2019s new chief executive, Luca de Meo, took the helm, marking one of his first major strategic moves aimed at reviving the company\u2019s performance. <\/p>\n

L\u2019Or\u00e9al, also based in Paris, is one of the world\u2019s largest beauty and cosmetics groups, with brands such as Garnier, Maybelline New York, and its flagship L\u2019Or\u00e9al Paris.<\/p>\n

Acquiring Kering\u2019s beauty arm would expand L\u2019Or\u00e9al\u2019s product portfolio, notably adding luxury fragrance maker Creed, which Kering acquired in 2023. <\/p>\n

The move would also open the door for potential beauty collaborations linked to Kering\u2019s high-end fashion labels, including Bottega Veneta, Balenciaga, and Alexander McQueen.<\/p>\n

Kering\u2019s shift away from in-house beauty production<\/h2>\n

Kering\u2019s beauty division was launched in 2023 as part of the company\u2019s broader effort to capitalize on the booming global cosmetics and fragrance sector. <\/p>\n

The decision marked a departure from its traditional licensing strategy, where third-party companies produced perfumes and cosmetics under Kering\u2019s brands.<\/p>\n

Within months of the division\u2019s creation, Kering made a major push into the space by acquiring Creed, a luxury fragrance brand known for its high-end colognes. <\/p>\n

The move was viewed as an effort to establish credibility in a crowded beauty market dominated by established players such as L\u2019Or\u00e9al, Est\u00e9e Lauder, and Coty.<\/p>\n

However, despite its ambitions, Kering\u2019s beauty operations have struggled to gain traction amid broader headwinds facing the company\u2019s core fashion business. <\/p>\n

Gucci, which accounts for the majority of Kering\u2019s revenue, has been hit by slowing sales in China \u2014 one of its largest markets. <\/p>\n

At the same time, Saint Laurent has seen weaker wholesale performance and softer demand in the US market.<\/p>\n

Selling the beauty division could provide Kering with a financial boost, helping the group reduce its debt, which stood at roughly $11 billion as of June 30. <\/p>\n

Analysts suggest the move would allow Kering to refocus resources on stabilizing and reinvigorating its fashion portfolio.<\/p>\n

Leadership transition and strategic reset<\/h2>\n

The negotiations with L\u2019Or\u00e9al coincide with a broader leadership transition at Kering. <\/p>\n

Luca de Meo, who took over as CEO from Fran\u00e7ois-Henri Pinault earlier this year, brings a fresh perspective from outside the luxury fashion industry. <\/p>\n

De Meo, previously the CEO of Renault, has over three decades of experience in the automotive sector, where he built a reputation as a skilled marketer and brand strategist.<\/p>\n

During his tenure in the car industry, de Meo helped revive several major brands, including Fiat\u2019s 500, Seat\u2019s Cupra line, and Renault\u2019s hybrid and electric vehicle range. <\/p>\n

His appointment signals Kering\u2019s intent to rethink its brand positioning and operational structure under new leadership. <\/p>\n

Pinault, whose family founded Kering, remains chairman of the board, maintaining continuity at the top.<\/p>\n

As competition intensifies among European luxury houses \u2014 including LVMH, Herm\u00e8s, and Chanel \u2014 Kering\u2019s divestment of its beauty arm could mark the start of a strategic reset. <\/p>\n

If finalized, the sale to L\u2019Or\u00e9al would represent one of the first significant moves under de Meo\u2019s leadership to restore growth momentum and financial stability at the luxury group.<\/p>\n

The post Kering in talks to sell beauty business to L\u2019Or\u00e9al for $4B: report<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Kering SA, the French luxury conglomerate and parent company of Gucci, is in advanced discussions to sell its beauty division to L\u2019Or\u00e9al in a deal that could value the unit at approximately $4 billion, reported WSJ, citing sources familiar with the matter. The transaction could be announced as early as next week, provided negotiations conclude <\/p>\n","protected":false},"author":1,"featured_media":44463,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-44462","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=44462"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44462\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/44463"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=44462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=44462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=44462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}