Kering Beauté acquires fragrance label Creed in strategic move

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Luxury group Kering Beauté has signed an agreement to acquire 100% of heritage fragrance house Creed from funds controlled by BlackRock Long Term Private Capital Europe and its current chairman Javier Ferrán as it looks towards strategic future growth.

The acquisition is a major step for Kering Beauté as it slots into its portfolio of renowned luxury brands. The acquisition provides Kering Beauté with the required scale, financial profile, as well as a platform to support the future development of other Kering Beauté fragrance franchises, by leveraging in particular Creed’s global distribution network.

Don't miss: L'Oréal acquires Aesop for a whopping US$2.5 billion

While preserving Creed’s rich heritage and brand image, Kering Beauté will further unlock Creed’s potential across geographies, channels, and categories, notably through the acceleration of its development in China and in travel retail, and its further expansion of the feminine fragrance portfolio, body and home categories.

The acquisition is expected to be finalised in the second half of 2023, subject to clearance by the relevant competition authorities, said Kering in a statement.

“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," said François-Henri Pinault, chairman and chief executive officer of Kering Beauté.

"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,” he continued.

Dag Skattum, head of European office of long term private capital at BlackRock, added on by saying: “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.”

CREED itself has been successfully conquering the lucury fragrence market. Over the past years, Creed has delivered fast-paced, double-digit growth and remarkable profitability with high EBITDA margins, it said. For the full year ended March 31, 2023, Creed generated revenue of more than €250 million.

The news comes shortly after it was announced that beauty company L'Oréal will acquire Aesop, a luxury skincare brand, for US$2.5 billion, according to a Natura & Co in a statement.

It stated that it had reached an agreement under which L'Oréal will acquire Aesop to "[open] a new chapter of the luxury brand's growth" after 10 years under Natura & Co.

The transaction however is still subject to customary regulatory approvals and is expected to close in Q3 2023, according to Natura & Co. In the transaction, Morgan Stanley served as lead financial advisor while Bank of America served as financial advisor, and Davis Polk & Wardwell as main legal advisor to Natura &Co.

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