Gucci and Balenciaga owner Kering and French beauty group L'Oréal have signed a 50-year exclusive beauty licence agreement for Gucci.
The agreement follows Gucci and Coty's decision to accelerate the redemption of their existing beauty licence, previously due to expire on 30 June 2028, by one year.
In October 2025, Kering agreed to sell its beauty business to L'Oréal for €4bn ($4.65bn).
That transaction included the transfer of the House of Creed and beauty and fragrance licences for Kering's luxury brands and gave L'Oréal a 50-year exclusive licence to create, develop and distribute fragrance and beauty products for Gucci once the Coty agreement concluded.
L'Oréal also secured similar exclusive licences for Bottega Veneta and Balenciaga, effective after the deal closes.
The new licence with L'Oréal is expected to take effect in mid-2027, subject to customary regulatory approvals and redemption of the existing agreement with Coty.
In its statement, Kering said the “partnership aims to unlock significant long-term growth opportunities across fragrance and beauty”.
The group added: “By fully harnessing the complementary strengths of beauty and fashion, Gucci and L’Oréal aim to deepen consumer engagement, broaden the House’s global reach and reinforce the consistency, relevance and impact of the brand across categories.”
Kering CEO Luca de Meo said: “Today’s agreement creates value for Gucci, L’Oréal and Coty alike. It accelerates the transition, enabling Gucci and L’Oréal to begin shaping the next chapter of Gucci Beauty a year earlier than planned.
“By bringing together two global leaders in luxury and beauty, we are creating the conditions to strengthen Gucci’s reach, influence and desirability across generations and geographies.”
Coty will receive approximately $400m in consideration for the early redemption of its licence rights, payable in cash instalments of $250m in 2026 and up to $150m in 2027.
Selected inventories will also be acquired as part of the transition, in addition to the $400m.
L'Oréal will pay Kering transition costs equivalent to approximately 70% of the early redemption costs and inventories, in consideration for Kering's orderly transition of the existing licence.
L'Oréal completed the €4bn acquisition of Kering Beauté in April, following approval from competition authorities.
