PARIS – L’Oréal has priced a 3-billion-euro triple-tranche bond to help finance part of its acquisition of Kering Beauté.
The offering is composed of three parts: an 850-million-euro two-year floating-rate bond, a 1-billion-euro five-year fixed-rate bond and a 1.15-billion-euro long 10-year fixed-rate bond.
The world’s largest beauty company said that net proceeds from the notes’ issuance will be used for general corporate purposes, including to finance a part of the Kering Beauté acquisition.
The notes will be admitted to trading on Euronext Paris starting from the deal’s settlement date, which is set for Nov. 19.
As previously announced, L’Oréal and Kering on Oct. 19 unveiled a multibillion-euro strategic partnership.
The deal includes L’Oréal acquiring The House of Creed and entering into 50-year exclusive licenses to develop and sell fragrances and beauty products for Kering’s brands Bottega Veneta and Balenciaga once the transition closes, likely in the first half of 2026, and for Gucci after its current contract with Coty Inc. ends. That is expected in 2028.
Balenciaga fragrances.
Courtesy
The 50/50 joint venture agreement is valued at 4 billion euros, which is payable in cash at the closing. L’Oréal will also pay royalties to Kering for use of its licensed brands.
Beyond beauty, the companies said they are joining forces to explore business opportunities at the intersection of luxury, wellness and longevity.
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