French luxury group Kering has completed the acquisition of high-end fragrance brand Creed. Kering says that Creed will be consolidated in its accounts from November 1, 2023.
As reported, Kering acquires Creed from funds controlled by BlackRock Long Term Private Capital Europe and current Chairman Javier Ferrán. It is thought that Kering paid up to €3.5bn for the fragrance brand.
Creed, which was established in 1760, is said to be the largest global independent player in the high-end fragrance market.
For the full year ended March 31, 2023, Creed generated revenue of more than €250m and 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.