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Coty and Kering have reached an agreement to transfer the Gucci beauty licence to L’Oréal, the three companies announced on Tuesday. Coty will receive $400 million for the early termination of the licence agreement, which was set to expire in 2028, and to provide it with funds to continue running the business until at least June 30, 2027.
The possibility of an early termination had been floated since October 2025 when Kering sold its beauty business, including the licences for its fashion brands like Bottega Veneta and Balenciaga, as well as beauty brands like perfumer Creed to L’Oréal for $4.6 billion. Coty has held the Gucci licence since 2016; L’Oréal’s chief executive Nicolas Hieronimus said in February that the company favoured earlier access to Gucci. Under the new agreement, L’Oréal will hold the Gucci licence for 50 years.
Gucci’s beauty output under Coty includes the popular fragrances Gucci Flora, Bloom, Guilty and Alchemist Garden, as well as a range of cosmetics relaunched in 2019.
In a statement, Coty’s interim chief executive Markus Strobel said the agreement was a desirable outcome. According to the statement, Coty has grown Gucci’s business more than 60 percent since 2019 when it relaunched its makeup offering, and funds generated from the early termination can also be used to pay down debt and refocus on its core brands. Coty received $250 million in cash at signing and will receive a further $150 million no later than Sept. 30, 2027, of which up to $30 million is contingent on undisclosed criteria. The agreement also a mutual resolution of any pending litigation between Coty and Kering.
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L’Oréal to Acquire Kering Beauty Portfolio for $4.6 Billion
The companies announced on Sunday that L’Oréal will acquire Kering’s beauty brands and licenses for its fashion house names, including Gucci.
