• Women’s Wear Daily, Thursday, January 24, 2008 1:30 PM

L'Oréal yesterday proposed to pay $1.68 billion for YSL Beauté Holding, which is part of the PPR subsidiary Gucci Group. L'Oréal will obtain an exclusive, long-term worldwide license for the use of the YSL and Boucheron brands in the fragrance and cosmetics categories. It will also take over YSL Beauté's licenses for the Stella McCartney, Oscar de la Renta and Ermenegildo Zegna brands.

PPR will continue to own the Yves Saint Laurent, Boucheron and Stella McCartney brands. The beauty license of Gucci Group brand Alexander McQueen will not be part of the transaction. YSL Beauté's brands would join L'Oréal's luxury division, which already includes Lanc"me, Biotherm, Helena Rubinstein, Shu Uemura, Kiehl's and Parfums Giorgio Armani, among other names.

Industry watchers weren't surprised PPR would ink a strategic agreement for YSL Beauté, pointing out that beauty is not core to PPR's business, which has a strong focus on retail and luxury goods. The news of the probable L'Oréal-PPR agreement quashes speculation that YSL Beauté would become part of Groupe Clarins. A final agreement could happen within weeks.

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