Kering Acquires the Entire Share Capital of High-end Fragrance Brand Creed
- Chaileedo Press
- Jun 27, 2023
- 2 min read
Kering announced that its beauty division Kering Beauté has entered into an agreement to acquire the entire share capital of the high-end fragrance brand Creed.
Kering announced that its beauty division Kering Beauté has entered into an agreement to acquire the entire share capital of high-end fragrance brand Creed from funds that are managed by BlackRock Long Term Private Capital Europe and the current Chairman, Javier Ferrán.
The acquisition is an all-cash transaction and is anticipated to be completed in the second half of 2023. The completion of the transaction is subject to clearance by the relevant competition authorities.
Founded in 1760 by James Henry Creed, Creed has an exclusive range of refined and classic perfumes, which includes the renowned Aventus fragrance. In a statement, Kering referred to Creed as the largest independent high-end fragrance maker worldwide. The brand produces its perfumes sustainably in its laboratory located in Fontainebleau, on the outskirts of Paris.
Creed provides a personalized and sophisticated in-store experience through its 36 branded stores and high-quality distribution channels, which consist of approximately 1,400 doors worldwide. For the full year ended 31 March 2023, Creed generated revenue of more than €250 million.
Kering stated that the acquisition of Creed represents a significant milestone for Kering Beauté, as it perfectly aligns with its portfolio of prestigious luxury brands. The acquisition provides Kering Beauté with the necessary scale, exceptional financial profile, and a platform to support the future development of other Kering Beauté fragrance franchises. This is made possible by leveraging Creed's global distribution network, which will help to expand Kering Beauté's reach in the fragrance market.
Kering Beauté intends to preserve Creed's rich heritage and high-end brand image while unlocking its full potential across geographies, channels, and categories. This will include accelerating its development in China and Travel Retail, expanding its feminine fragrance portfolio, and introducing new products in the body and home categories.
François-Henri Pinault, Chairman and Chief Executive Officer of Kering, commented: “The acquisition of Creed represents Kering Beauté’s first strategic initiative, and demonstrates our commitment to developing a strong position in the luxury beauty segment. I am thrilled that today our stories and values come together around this spirit of family entrepreneurship and excellence to accelerate our journey in beauty, and I am delighted that the brand is joining Kering’s collection of luxury Houses.”
Kering announced this February that it will establish an in-house beauty division, called Kering Beauté, which will enable the company to manage its beauty business directly without relying on external distributors. Kering Beauté will concentrate on developing beauty lines for several of its existing brands, such as Bottega Veneta, Balenciaga, and Alexander McQueen.
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