L’Oreal eyes Armani stake after Kering beauty buy
L’Oreal plans to acquire a stake in Armani despite purchasing Kering’s beauty operations for $4.6 billion. Chief executive Nicolas Hieronimus told Le Figaro the French cosmetics company aims to buy 15 percent of the Italian fashion house. The Kering deal grants L’Oreal exclusive 50-year licenses for Gucci, Bottega Veneta, and Balenciaga products starting in 2028.
Giorgio Armani specified in his will that a major luxury firm should purchase a minority share of his privately held company valued at $5.6 billion. The late designer named LVMH, EssilorLuxottic, and L’Oreal as potential partners. Hieronimus said the Kering partnership demonstrates L’Oreal’s commitment to the luxury sector. The selected investor could eventually control Armani by purchasing up to 54.9 percent of shares.
