Gucci beauty licence moves to L'Oréal a year early as Coty agrees $400m transition
Kering said Gucci and L'Oréal have agreed to a 50-year exclusive beauty and fragrance licence a year ahead of schedule, with Coty accepting an early transition in exchange for approximately $400 million.
The agreement means Coty will continue to operate Gucci Beauty through at least 30 June 2027, rather than holding the licence until its original expiry date of 30 June 2028. The new L'Oréal licence is expected to take effect in mid-2027, subject to customary regulatory approvals.
Coty received $250 million in cash at signing and is due an additional $150 million no later than 30 September 2027, with up to $30 million of the later payment contingent on certain criteria. The company will also sell Kering sufficient Gucci Beauty inventory to support the transition. Coty estimates that it will incur cash taxes of approximately $30 million in connection with the deal.
L'Oréal will cover around 70% of the early redemption costs and inventory amounts as consideration for an orderly handover.
Luca de Meo, CEO of Kering, said: "Today's agreement creates value for Gucci, L'Oréal and Coty alike. It accelerates the transition, enabling Gucci and L'Oréal to begin shaping the next chapter of Gucci Beauty a year earlier than planned."
Markus Strobel, Executive Chairman and Interim CEO of Coty, said the agreement "delivers a favourable outcome to conclude the Gucci Beauty license, enabling Coty to redeploy capital and focus on our priority brands".
Coty will use the proceeds for debt reduction, reinvestment in its core prestige fragrance and beauty portfolio, and organisational streamlining.
The accelerated licence is part of the broader beauty and wellness alliance that Kering and L'Oréal first announced on 19 October 2025 and completed on 31 March 2026. That wider transaction, valued at €4 billion, saw L'Oréal acquire Kering Beauté including Creed, alongside 50-year exclusive licences for Bottega Veneta and Balenciaga.
Gucci was the remaining piece. Under the original terms, L'Oréal's right to the brand would have begun only after Coty's agreement expired in mid-2028. The July deal brings that start date forward by roughly a year.
Coty acquired the Gucci Beauty licence in 2016 and said it had grown the brand's revenues by more than 60% since 2019, with global franchises including Gucci Flora, Bloom, Guilty and Alchemist Garden.
The deal now awaits regulatory clearance. Coty will continue to operate Gucci Beauty through the transition period, while L'Oréal gains earlier access to one of luxury's largest prestige beauty assets as it strengthens its long-term position in the category.
