Kering Beaute has announced its signing of an agreement acquiring the high-end luxury heritage fragrance house Creed from BlackRock Long Term Private Capital Europe and current Chairman Javier Ferrán. The acquisition of Creed is a major step for Kering Beauté. A perfect fit with its portfolio of renowned luxury brands, it immediately provides Kering Beauté with the required scale. An outstanding financial profile indeed, supporting the future development of other Kering Beaute fragrance franchises. In addition, it will leverage Creed’s global distribution network.
House of Creed
The House of Creed was established in 1760 by James Henry Creed. And it is the largest global independent player in the high-end fragrance market. Creed possesses a distinct collection of timeless and sophisticated perfumes, including the iconic Aventus.
The acquisition of Creed forms a major step for Kering Beaute. While preserving Creed’s rich heritage and high-end brand image, Kering Beaute will further unlock Creed’s potential across geographies, channels, and categories. Notably through the acceleration of its development in China and travel retail. And then further expansion of the feminine fragrance portfolio, body and home categories.
The high-end luxury fragrance segment benefits from strong market dynamics. It will fuel double-digit growth, high profitability, and significant revenue recurrence driving long-term resilience through the cycle. The beauty category is in fact, a natural extension of Kering’s luxury universe. And the Group is confident its expansion in this strategic segment will create lasting value for the Group and its Houses.
Evidently, the all-cash transaction is expected to close in the course of H2 2023. This may be subject to clearance by the relevant competition authorities.
François-Henri Pinault, Chairman and Chief Executive Officer of Kering, commented: “The acquisition of Creed represents Kering Beaute’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.”