French luxury goods company Kering said Sunday it is selling its beauty division to L'Oreal for 4 billion euros ($4.66 billion).

Under the agreement, Clichy, France-based L'Oreal will acquire the House of Creed high-end fragrance company as well as licenses to create beauty and fragrance products for Kering brands like Gucci, Bottega Veneta and Balenciaga.

The companies said they will establish a strategic committee to ensure coordination between Kering brands and L'Oréal. Kering and L'Oréal said they are also exploring joint business opportunities in the wellness and longevity market, combining L'Oreal's innovation with Kering's deep understanding of luxury clients.

The deal has some precedence. L'Oreal acquired the beauty license for Kering's Yves Saint Laurent brand in 2008.

Luca de Meo, CEO of Paris-based Kering, said the deal combines L'Oreal's expertise with Kering's luxury reach.

"Joining forces with the global leader in beauty, we will accelerate the development of fragrance and cosmetics for our major houses, allowing them to achieve scale in this category and unlock their immense long-term potential, as did Yves Saint Laurent Beauté under L'Oréal's stewardship," de Meo said in a statement.

Nicolas Hieronimus, the CEO of L'Oreal Groupe, said Creed is one of the fastest growing players in the niche fragrance market, while Gucci, Bottega Veneta and Balenciaga are "exceptional couture brands with enormous potential for growth."

The all-cash deal is expected to close in the first half of 2026. L'Oréal will also pay royalties to Kering for the use of its licensed brands.