Kering Beauté to acquire Creed to expand presence in high-end fragrance market

Kering Beauté, a French luxury group, has inked an agreement to acquire all shares of luxury fragrance house Creed, currently under the control of BlackRock Long Term Private Capital Europe and Chairman Javier Ferrán.

Established in 1760 by James Henry Creed, the House of Creed stands as a major independent player in the global high-end fragrance market, boasting iconic perfumes such as Aventus in its collection.

This acquisition is a significant stride for Kering Beauté, seamlessly fitting into its portfolio of prestigious luxury brands. The inclusion of Creed provides Kering Beauté with the needed scale, an impressive financial profile, and a platform that supports future growth of other Kering Beauté fragrance franchises. The deal is expected to leverage Creed’s global distribution network in particular.

Kering Beauté to expand presence in high-end fragrance market with Creed acquisition. Photo courtesy of KERING.

Kering Beauté intends to maintain Creed’s rich heritage and premium brand image while unlocking its potential across regions, channels, and categories. Key strategies include accelerating Creed’s expansion in China and Travel Retail and broadening the feminine fragrance portfolio, as well as body and home categories.

The luxury fragrance segment displays robust market dynamics, with high profitability and double-digit growth. Kering is optimistic that its expansion in this strategic segment, a natural extension of Kering’s luxury universe, will generate long-term value for the Group and its Houses.

François-Henri Pinault — Kering Beauté Chairman and CEO said: “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.”

Creed is esteemed for its unique creative spirit, timeless scents, and artisanal essences. The fragrance house upholds the legacy of sourcing, researching, and commissioning its natural raw ingredients. Through its “Fragrance for the Future” framework, Creed ensures the sustainable production of fragrances in its laboratory in Fontainebleau, on the outskirts of Paris. With over €250 million in revenue for the year ending March 31, 2023, Creed signifies a promising addition to Kering Beauté’s expanding luxury portfolio.

Dag Skattum — BlackRock Head of European Office of Long Term Private Capital said: “It has been a privilege to build on the Creed family legacy and to have partnered with such a dedicated and talented management team, led by CEO Sarah Rotheram, to further strengthen Creed’s iconic standing.

“We are confident that Kering is the right home for such a unique heritage brand, and that it will continue to thrive under their stewardship.”

The all-cash transaction is set to close in the latter half of 2023, pending clearance by relevant competition authorities.