Kering has finalized the sale of its beauty and perfumes activities to L’Oréal for around 4 billion euros. This deal marks the first major decision by Luca de Meo, the group's new CEO since last month. The agreement, revealed by the Wall Street Journal the day before, builds on a long history of collaboration between the two French companies.
The agreement between Kering and L’Oréal was finalized on Sunday evening, October 19, 2025, according to a group statement. Revealed by the Wall Street Journal the previous Saturday, this transaction involves the sale of Kering's beauty division, valued at around 4 billion euros. It marks the first major decision by Luca de Meo, who succeeded François-Henri Pinault as CEO on September 15, 2025, with Pinault remaining president.
The two companies have deep ties in the cosmetics sector. L’Oréal, the global leader, already operates Yves Saint Laurent Beauté, acquired in 2008 from PPR – Kering's predecessor – for 1.15 billion euros. Since then, the franchise's revenue has multiplied by six. L’Oréal also holds the Valentino license, in which Kering owns 30% with an option to buy 100% by 2028-2029.
This deal occurs amid challenges in the luxury sector, with a slowing Chinese market and a projected 2% to 5% decline in 2025. Luca de Meo, former Renault CEO, faces tasks like reviving Gucci and restructuring Kering's portfolio. In a recent WWD interview, François-Henri Pinault reflected on his 20-year tenure, highlighting creative bets and regrets while stepping back to other roles.