Kering Beauté, the renowned luxury conglomerate, has announced its acquisition of Creed, the esteemed heritage fragrance house known for its exceptional scents and use of exquisite natural ingredients. This strategic move positions Kering Beauté as a major player in the high-end luxury fragrance segment and sets the stage for future growth opportunities.
Creed, established in 1760 by James Henry Creed, has earned global recognition as the largest independent brand in the high-end fragrance market. The house boasts a collection of timeless and sophisticated perfumes, including the iconic Aventus.
For Kering Beauté, the acquisition of Creed represents a significant milestone. With its portfolio of renowned luxury brands, Kering Beauté gains immediate scale, a robust financial profile, and access to Creed's global distribution network. This acquisition sets the stage for the future development of Kering Beauté's fragrance franchises, leveraging the brand's expertise and reputation.
While Kering Beauté aims to preserve Creed's rich heritage and high-end brand image, it also seeks to unlock the brand's potential across various geographies, channels, and categories. This includes accelerating development in China and Travel Retail, expanding the feminine fragrance portfolio, and venturing into the body and home categories.
The high-end luxury fragrance segment is experiencing strong market dynamics, characterized by double-digit growth, high profitability, and recurring revenues that ensure long-term resilience. With this acquisition, Kering Beauté reinforces its presence in the beauty category, complementing its existing luxury universe and creating lasting value for the group and its prestigious Houses.
The transaction, an all-cash deal, is expected to close in the second half of 2023, subject to approval from the relevant competition authorities.
François-Henri Pinault, Chairman and CEO of Kering, expressed his enthusiasm for the acquisition, emphasizing its strategic significance for Kering Beauté's entry into the luxury beauty segment. He highlighted the alignment of values and family entrepreneurship between the two brands, underscoring their shared commitment to excellence.
Jean-François Palus, Group Managing Director of Kering, praised Creed as one of the leading global luxury fragrance brands, synonymous with exclusivity and creativity. He believes that this acquisition will propel Kering Beauté's growth in the fragrance industry and marks a significant milestone in the brand's development.
Raffaella Cornaggia, CEO of Kering Beauté, recognized the unique positioning of Creed in the fragrance market. She expressed excitement about the strategic benefits and synergies that will be achieved in terms of expertise, network, and geographical footprint. Cornaggia looks forward to collaborating with CEO Sarah Rotheram and the passionate Creed team to drive the brand's continued success worldwide.
BlackRock Long Term Private Capital Europe and current Chairman Javier Ferrán, who controlled funds invested in Creed, expressed their pleasure and honor in partnering with the Creed family. They highlighted the collaboration in growing the business through geographic and channel expansion, new product development, and focused marketing strategies. They believe the acquisition by Kering is a testament to the brand's unique heritage and expect Creed to thrive under the new ownership.
Founded as a tailoring house for European royal families in 1760, Creed has evolved into a prestigious fragrance house renowned for its rich heritage and commitment to craftsmanship. The brand is celebrated for its timeless scents and unisex versatility, with Aventus consistently ranking among the top luxury fragrances worldwide. Creed's dedication to sourcing, researching, inspecting, and commissioning its own natural raw ingredients ensures the creation of highly distinctive and sophisticated scents of unrivaled quality.
Through its "Fragrance for the Future" framework, Creed prioritizes sustainable production, utilizing traditional techniques passed down through generations at its laboratory in Fontaine near Paris.
With 36 branded stores and distribution through approximately 1,400 doors globally, Creed offers a tailored, elevated in-store experience. The brand has achieved remarkable profitability, delivering fast-paced, double-digit growth with high EBITDA margins, all while maintaining the utmost product quality and brand equity. In the fiscal year ending March 31, 2023, Creed generated revenue exceeding €250 million.
As Kering Beauté takes the helm of Creed, both brands anticipate a bright future together, combining their expertise and shared vision for excellence in the luxury fragrance industry.
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