CLICHY (dpa-AFX) - French luxury goods group Kering SA (PPRUF.PK, PPRUY.PK, KER.PA) announced that its Italian fashion house Gucci has entered into a 50 -year exclusive beauty license agrrement with French Cosmetics and beauty products giant L'Oreal Co. (LRLCY.PK, OR.PA).
Kering said the new milestone is in line with its Beauty and Wellness alliance with L'Oréal, which was announced on October 19, 2025.
The agreement follows the decision by Gucci and its current beauty license partner Coty Inc. (COTY) to bring forward the redemption date of their existing deal, previously due to expire on June 30, 2028, by one year.
The new license agreement with L'Oréal for the creation, development, and distribution of fragrances and beauty products for the Gucci brand is expected to become effective as of July 1, 2027, subject to regulatory approvals, and the redemption of the existing license deal with Coty.
For the early redemption of the existing license agreement rights, Coty will receive around $400 million in consideration. In the related cash payments, $250 million will be made over the course of 2026 and up to $150 million in 2027.
L'Oréal will pay to Kering transition costs amounting to around 70% of the early redemption costs and inventories as consideration for the orderly transition by Kering of the existing license agreement.
Regarding the latest deal, Luca de Meo, CEO of Kering, sytated, '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.'
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