French luxury group Kering has agreed to sell its beauty division, including the high-end perfume brand Creed, to L’Oreal for $4.6 billion. The move marks a major step for Kering as it looks to tackle its growing debt.Under the agreement announced on Sunday, L’Oreal will also secure 50-year exclusive licences to make and sell beauty products for Kering’s top fashion houses, Gucci, Bottega Veneta and Balenciaga. These licences will come into force after Kering’s current partnership with US company Coty ends in 2028.Both companies described the deal as “a long-term strategic partnership in luxury beauty and wellness”. Valued at around €4 billion overall, the transaction is subject to regulatory approval, with completion expected in the first half of 2026.“Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market,” said Nicolas Hieronimus, chief executive of L’Oreal.The deal comes shortly after Luca de Meo took over as Kering’s new CEO. He has been tasked with reducing the group’s debt, which stands at around 9.5 billion Euros . In July, Kering reported a sharp decline in earnings, with net profit down 46% to 474 million Euros in the first half of the year, and revenue dropping 16% to 7.6 billion Euros.De Meo described the sale as a “decisive step for Kering”.