Kering in Talks to Sell Beauty Unit to L'Oréal in $4 Billion Deal

Tip Ranks
2025.10.19 08:32
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Kering is in discussions to sell its beauty division to L'Oréal for $4 billion. The beauty unit, launched in 2023, has struggled with sales declines at Gucci and Saint Laurent, prompting Kering to seek debt reduction, with liabilities near $11 billion as of June 30. KER shares saw a slight increase, closing at €309.55.

Kering, which owns Gucci, Saint Laurent, and Balenciaga, started its beauty division in 2023 to make more perfumes and cosmetics in-house. It also bought Creed, a luxury cologne brand, that same year in an all-cash deal. However, the beauty arm has had a short run. Sales at Gucci have slowed in China, and Saint Laurent has faced a weaker market in the U.S. As a result, Kering's broader business has felt pressure, and the company is looking for ways to cut debt, which stood near $11 billion as of June 30.

In the meantime, KER shares rose slightly yesterday, closing at €309.55.

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