Prada and L’Oréal have announced a long-term beauty collaboration following months of speculation.

Though specific terms of the agreement were not disclosed, the deal goes into effect on Jan. 1, 2021. Speculation about the deal surfaced after a summer 2018 WWD report. Since 2003, fragrance and fashion business Puig has held Prada’s fragrance and beauty license.

“L’Oréal is the leading global beauty company,” says Patrizio Bertelli, chief executive officer, Prada. “Its position and experience makes it the ideal partner for Prada to develop its full potential across a variety of new projects, leverage Prada’s well-established fragrance identity and reach even more audiences around the world.”

In addition to Prada, L’Oréal recently signed an agreement to acquire the Mugler brands and Azzato fragrances from Groupe Clarins. Valentino was also recently added to its portfolio.

“We are very pleased to have signed this license agreement with Prada,” says Cyril Chapuy, president, L’Oréal Luxe. “Prada is one of the most respected players in the global luxury industry. A symbol of excellence and avant-garde, the Prada brand's unique and unconventional philosophy appeals to consumers around the world. This license will give L'Oréal Luxe the ideal complement to its portfolio of iconic brands.”

L’Oréal is the second largest player in the luxury fragrance category, vying for the top spot among competitor Coty, which owns big names such as Gucci and Hugo Boss.