Key facts
- Coty Inc. has agreed to transition the Gucci Beauty license back to Kering.
- The deal is valued at approximately $400 million.
- Coty will continue to manage Gucci Beauty operations until at least June 30, 2027.
- The funds will be used to reduce debt and reinvest in Coty's prestige brands.
- Coty acquired the Gucci Beauty license in 2016 and has grown its revenue significantly since 2019.
Coty Inc. has reached an agreement with Kering to bring the Gucci Beauty license back to the luxury conglomerate, approximately one year earlier than originally planned. The deal is valued at around $400 million, with Coty set to receive the funds in installments. Coty will continue to manage Gucci Beauty operations until at least June 30, 2027, ensuring a smooth transition. The proceeds from the transaction are earmarked for debt reduction, reinvestment in Coty's core prestige fragrance and beauty brands, and organizational optimization. Coty acquired the Gucci Beauty license in 2016 and has since seen significant revenue growth, particularly since 2019, driven by popular franchises like Gucci Flora, Bloom, Guilty, and Alchemist Garden. The agreement also includes a mutual resolution of all pending litigation between the two companies concerning the license.