A €1.1 billion offer from cosmetics giant L'Oréal to acquire Yves Saint Laurent Beauté, owned by fellow family-owned firm PPR, has been agreed.
The luxury goods retailer will retain control of the YSL and Boucheron brands but their perfumes and cosmetics will be made by L'Oréal. L'Oréal will also have responsibility for the same branches of the Stella McCartney, Oscar de la Renta and Ermenegildo Zegna brands.
"With this strategic agreement with the world leader in cosmetics, Gucci Group gives YSL Beauté the opportunity to take full advantage of its upside potential," said PPR CEO and family member François-Henri Pinault. "It also enables the YSL brand, in the field of beauty, to fully align its ambition with its worldwide reputation. YSL would thus boost its position as a great luxury brand."
This news comes just two days after L'Oréal announced changes to its management board with a new executive vice-president of consumer products and managing director of the professional products division.
L'Oréal, owned by the Bettencourt family, has revenues of around €14.2 billion. YSL Beauté recorded sales of around €630 million in 2006.