Kering Backs Away From Beauty With $4.7 Billion L’Oreal Deal (2)

Kering SA agreed to sell its beauty division to L’Oreal SA in a €4 billion ($4.7 billion) deal, with new Chief Executive Officer Luca de Meo changing course in a bid to turn around the French luxury giant’s fortunes.

The transaction includes the sale of perfume maker House of Creed, which Kering bought only two years ago. The two companies also said they’ll work together to create, develop and distribute fragrance and beauty products for Kering’s Gucci, Bottega Veneta and Balenciaga brands.

The move reverses the luxury-goods company’s previous plan to bulk up and take direct control of ...