PARIS, Feb 13 - L'Oreal would be pleased to receive the Gucci beauty licence ahead of the planned 2028 handover, Chief Executive Nicolas Hieronimus told analysts on Friday, confirming that the timing of the licence is under discussion between Gucci-owner Kering and current licence-holder Coty.
The Gucci beauty licence was central to the agreement struck last year between Kering and L'Oreal, according to people familiar with the transaction. Representatives from Kering and Coty declined to comment on the talks.
Asked directly about the licence during a conference call, Hieronimus said, "We’ll be happy to get the brand sooner." He added that, for the moment, Coty retains the licence through to 2028.
Analysts view Gucci as one of the most recognisable names in luxury, though they consider the brand's beauty activities to be relatively under-developed compared with its broader fashion business.
Hieronimus reiterated that the licence is still controlled by Coty and that any earlier transfer would depend on discussions between Coty and Kering. "It’s something that’s being discussed between Kering and Coty," he said.
Coty’s management has previously signalled openness to value-creating transactions. Earlier this month, Coty's new chief executive Markus Strobel said: "We are always open for deals that create value for us, that create value for our shareholders." Strobel succeeded former CEO Sue Nabi.
A source familiar with the matter told Reuters that Kering had offered to buy out Coty prior to finalising the L'Oreal agreement, but that Coty declined that offer. The U.S. group's Swiss unit, HFC Prestige International Operations Switzerland, filed a lawsuit in the UK last year against Gucci.
In October, Kering sold its beauty division - built around perfume maker Creed - to L'Oreal for 4 billion euros. At the time of the sale, an industry source described the Creed asset as one Kering had overpaid for and suggested L'Oreal's principal interest in the wider transaction was the Gucci licence. The source was quoted saying: "The reality is that Kering has an asset called Creed that they overpaid for. L'Oreal didn’t want it, which is part of the bride’s dowry," and adding, "L’Oreal’s only interest was the Gucci licence."
Currency reference in the transaction discussion: $1 = 0.8427 euros.
Context and next steps
At present, the path to any early transfer of the Gucci beauty licence rests on negotiations between Kering and Coty. Should those discussions progress, they would determine whether L'Oreal could assume the licence prior to 2028.