Kering Beauté to acquire Creed


Kering Beauté is to acquire fragrance brand Creed from funds controlled by BlackRock Long Term Private Capital Europe and current Chairman Javier Ferrán.

Creed, which was established in 1760, is said to be the largest global independent player in the high-end fragrance market.

Creed, which is known for its best-seller Aventus, is sold through 36 branded stores,and in around 1,400 doors globally. For the full year ended March 31, 2023, Creed generated revenue of more than €250m. Kering states that over the past years, Creed has delivered double-digit growth and high EBITDA margins.

Kering Beauté highlighted that it will look to develop Creed in China and in travel retail and expand the brand’s women’s fragrance portfolio, body and home categories. Men’s fragrance currently accounts for 65% of the brand’s portfolio, followed by 15% for women’s, 15% for unisex scents and 5% for other fragrances.

The acquisition is a major move for Kering, which set up its beauty division in February this year and appointed former Estée Lauder Companies executive Raffaella Cornaggia as its CEO. The company says that it sees fragrance as a strategic category.

Kering says the deal immediately provides it with scale in fragrance, and that Creed’s global distribution network will help the development of other Kering Beauté fragrance franchises.

When Kering launched its beauty division, it said it would develop the category for Kering-owned brands  Bottega Veneta, Balenciaga, Alexander McQueen, Pomellato and Qeelin.

Kering underlined that the high-end luxury fragrance segment is seeing double-digit growth and high profitability. It added that Creed has a 10% share of the global high-end luxury fragrance market.

The all-cash transaction is expected to close in the second half of the year, subject to clearance by competition authorities.

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.”

Raffaella Cornaggia, CEO of Kering Beauté, added: “Creed has a unique positioning in the fragrance market. We see a very compelling rationale and mutual strategic benefits in terms of expertise, network, and geographical footprint. We look forward to working with CEO Sarah Rotheram and her passionate team to continue to drive Creed’s success worldwide.”