Kering SA agreed to sell its beauty division to L’Oreal SA as part of a long-term strategic alliance, with Chief Executive Luca de Meo seeking to turn around the French luxury giant’s fortunes.

The owner of fashion brands including Gucci said the deal aims to accelerate growth, according to a statement issued by both companies on Sunday night.

The deal is valued at €4 billion ($4.7 billion), according to the statement.

Kering launched its beauty division in 2023. The company acquired high-end fragrance label Creed that year for an estimated €3.5 billion to build its beauty platform, but it has been dealing with more pressing issues ever since.

As part of the deal, L’Oreal, the world’s biggest dedicated cosmetics and beauty player, would add Creed to its portfolio.

“Joining forces wit

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