Gucci-owner Kering sells beauty unit to L'Oreal for $4.7 bil.

PARIS — Gucci owner Kering has agreed to sell its beauty business to L'Oreal for 4 billion euros ($4.7 billion), the first major gambit by new CEO Luca de Meo as he stamps his mark on the luxury group and cuts back its debt pile. Under the deal, French beauty giant L'Oreal will acquire Kering's fragrance line Creed, as well as exclusive rights to develop fragrance and beauty products for 50 years under Kering's fashion labels including Bottega Veneta and Balenciaga. That marks a sharp swerve in direction by de Meo less than two months after taking the helm, as he unwinds one of his predecessor Francois-Henri Pinault's biggest strategic pivots. Pinault, whose family controls the group, spearheaded the acquisition of Creed in 2023 for 3.5 billion euros. Analysts said L'Oreal had struck a savvy deal for the assets, while de Meo was hitting a key target: quickly cutting high debt levels that had become a mill stone for the group. Shares in Kering jumped 4.8 percent on Monday while L'Oreal rose 1.2 percent. "We believe selling Kering Beauté at around the same price paid for Creed two yearsWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times