L’Oréal funds landmark Kering Beauté deal with €3 billion worth of bonds

By Alessandro Carrara | Published: 13-Nov-2025
Finance

Kering revealed its intent to sell off its beauty division to the French conglomerate in October in a historic €4bn deal. L’Oréal plans to partly fund this deal through the issuance of €3bn worth of bonds

L’Oréal is partly funding its historic €4bn acquisition of Kering’s beauty division through the issuance of €3bn worth of bonds.

The French beauty giant’s offering is composed of three tranches, broken down into a €850m two-year floating rate bond, €1bn five-year fixed rate bond, and a €1.15bn long ten-year fixed-rate bond.

The net proceeds from the issuance will be used for general corporate purposes, including financing part of the acquisition of Kering Beauté.

Société Générale, Natixis, JP Morgan and Citi are acting as Global Coordinators, while Standard Chartered, ING, Barclays and HSBC are acting as Active Joint Bookrunners.

Kering established its beauty division in 2023 to develop the beauty arms for its Bottega Veneta, Balenciaga, Alexander McQueen, Pomellato and Qeelin houses.

It then acquired luxury fragrance house Creed in June that year for a reported US$3.8bn.

The fundraising move follows luxury fashion giant Kering's revealing its intent to sell its beauty division to L’Oréal in October.

The deal is set to complete in the first half of 2026 and will see the French beauty giant acquire fragrance and beauty licences such as House of Creed.

The partnership also includes the rights to enter into a 50-year exclusive license for the creation, development, and distribution of fragrance and beauty products for Gucci.

This will commence after the expiration of the current license with Coty, Kering stated at the time.

A subsidiary of Coty, HFC Prestige International Operations Switzerland, has filed a lawsuit over the Gucci licence.

Gucci America, Guccio Gucci, the luxury fashion house’s Italy-based holding company, and Kering have been named as defendants in the claim.

The claim was filed with the UK Commercial Court on 20 October, according to Caseboard, a website which compiles publicly available court documents in the UK.

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