L’Oréal to snap up Gucci Beauty licence from Coty earlier than expected

By Lynsey Barber | Published: 8-Jul-2026

L’Oréal, Coty and Kering have come to an agreement for the early transfer of the Gucci Beauty licence and a termination fee of £400m will be paid to incumbent Coty

L’Oréal will take over the Gucci Beauty licence from Coty one year earlier than expected after a deal was reached with Gucci’s owner Kering.

The termination of Coty’s licence to produce Gucci’s range of fragrance and make-up had been expected in 2028, following L’Oréal’s €4bn acquisition of Kering Beauté last year.

Now, L’Oréal, Kering and Coty have agreed the 50-year Gucci Beauty licence will start with L’Oréal from 1 July 2027.

“I am truly excited by the opportunity to welcome Gucci Beauty within the L’Oréal roster of brands with one year [of] anticipation,” said Nicolas Hieronimus, CEO of L'Oréal.

“It is the start of a 50-year journey, a significant additional growth engine for L’Oréal and [a] new milestone in our partnership with Kering.”

The CEOs of each of the three beauty companies had all previously indicated that they were open to the early ending of the current Gucci Beauty licence, which has been held by Coty since 2016.

Coty will receive an early termination fee of around US$400m, as well as payment related to the sale of Gucci Beauty inventory back to Kering to support the transition, with L’Oréal paying around 70% of the costs.

The payments will consist of $250m in cash at the deal signing, and a further $150m will follow by 30 September 2027, of which $30m is contingent on certain criteria which has not been disclosed.

The cash will go towards the company’s ‘Coty:Curated’ turnaround plan, including paying down debts and reinvestment in its core prestige fragrance and beauty brands, as well as optimising its organisational structure.

Markus Strobel, Executive Chairman and Interim CEO of Coty, said: “This agreement delivers a favourable outcome to conclude the Gucci Beauty licence, enabling Coty to redeploy capital and focus on our priority brands.

“It recognises the substantial value created in Gucci Beauty under our stewardship and enhances our financial flexibility.”

As part of the new deal, Coty and Kering have also agreed to resolve outstanding litigation related to the Gucci licence.

Kering sold its beauty business, Kering Beauté, to L’Oréal last year, including fragrance house House of Creed, and the beauty and fragrance licences of Houses of Kering.

L’Oréal hopes to turn Kering’s fashion houses such as Bottega Veneta and Balenciaga into powerhouse beauty brands in its L’Oréal Luxe division, in the same vein as Yves Saint Laurent Beauty.

The blockbuster deal also included the rights to enter into a 50-year exclusive licence for the creation, development, and distribution of fragrance and beauty products for Gucci.

Commenting on the earlier than expected licence acquisition, Cyril Chapuy, President of L’Oréal Luxe, said: “The arrival of this iconic brand adds a unique, highly complementary creative energy to our portfolio.

“By fusing Gucci’s radical edge with our world-class engine, we are set to build a new multibillion-euro house.”

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.

“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.”