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French beauty giant L’Oréal has struck a $4.66 billion deal to acquire the perfume brand Creed and secure exclusive rights to develop products under Kering’s iconic fashion houses — Bottega Veneta and Balenciaga — for the next 50 years.

The transaction marks a key move for Kering, whose net debt reached €10.5 billion by the end of June, raising investor concerns. The group’s new CEO, Luca de Meo, is actively restructuring the business, focusing on its core fashion lines while reducing debt.

Kering has faced slowing growth in its flagship brand, Gucci, particularly in the crucial Chinese market, making the deal strategically important.

Under the agreement, L’Oréal not only gains the prestigious Creed perfume label but also the ability to develop exclusive beauty products inspired by Kering’s legendary fashion houses, effectively merging high fashion and cosmetics under one umbrella.

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