Gucci owner Kering has agreed to sell its beauty business to L’Oreal for $4.66 billion, the company said on Sunday, as new CEO Luca de Meo moves to tackle the luxury group’s high debt and refocus on its core fashion business.

Under the deal, French beauty giant L’Oreal will acquire Kering’s fragrance line Creed, as well as rights to develop products under Kering’s fashion labels Bottega Veneta and Balenciaga under a 50-year exclusive license.

L’Oreal is acquiring Kering’s fragrance line Creed, and rights to develop other products under the behemoth’s labels. ltyuan – stock.adobe.com

Francois-Henri Pinault, chief executive officer of Kering SA, arrives at a news conference to announce the company’s full year earnings in Paris, France, on Tuesday, Feb. 12, 2019. Bloomberg via Getty Imag

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