Finance
Sale of beauty assets to L'Oreal will be "net gain" in results, Kering COO says
Published by Global Banking & Finance Review®
Posted on October 22, 2025
1 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 22, 2025
1 min readLast updated: January 21, 2026
Kering's sale of its beauty business to L'Oreal for 4 billion euros is expected to yield a net gain, enhancing its financial results.
PARIS (Reuters) -Kering's sale of its beauty business to L'Oreal will result in a "net gain before tax" in Kering's annual results, COO Jean-Marc Duplaix told analysts in a call on Wednesday when asked if the transaction would lead to a writedown.
Under the deal announced on Sunday, L'Oreal agreed to pay 4 billion euros for Kering's premium fragrance brand House of Creed, which it bought for 3.5 billion euros in 2023, as well as exclusive rights to develop fragrance and beauty products for 50 years under Kering's Bottega Veneta and Balenciaga labels.
The agreement also includes a 50-year licence for beauty products under the Gucci label once a current agreement with Coty expires in coming years, and believed by many analysts to be the most valuable part of the deal.
Duplaix declined to break down how much each of the deal's different parts was worth in the overall agreement.
(Reporting by Tassilo Hummel)
A fragrance brand specializes in creating and selling perfumes and scented products, often associated with luxury and lifestyle.
A writedown is an accounting term that refers to reducing the book value of an asset because it is overvalued compared to its current market value.
A corporate acquisition occurs when one company purchases most or all of another company's shares to gain control of that company.
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