Kering Beauté announces that it has signed an agreement to acquire 100 % of Creed (€250 million sales 2023) from funds controlled by BlackRock Long Term Private Capital Europe and Javier Ferrán, the company's current president.
Founded in 1760 by James Henry Creed, the House of Creed is an independent player in the buoyant haute parfumerie market, with distinctive fragrance collections that are both timeless and sophisticated, including the iconic Aventus. Created as a couture house for the royal families of Europe, it later became a house of "haute parfumerie". Creed's rich family heritage is a testament to its unique creativity. Olivier Creed and his son Erwin continue this tradition today.
Through its "Fragrance for the Future" program, the company ensures that all its fragrances, developed using artisanal practices and techniques handed down from generation to generation, are sustainably produced in its laboratory in Fontainebleau, near Paris.
This acquisition represents a major step forward for Kering Beauté. Complementing its portfolio of luxury houses, it immediately gives Kering Beauté substantial scale, an attractive financial profile and a platform to support the future development of other Kering Beauté fragrances, thanks in particular to Creed's worldwide distribution network (36 boutiques and 1,400 points of sale). Creed has achieved double-digit growth in recent years, with remarkable profitability and very high Ebitda margins, while preserving the quality of its products and image.
While preserving the House's heritage and exclusive positioning, Kering Beauté will strive to unleash its full potential, both geographically and in terms of distribution and product categories, in particular by accelerating Creed's development in China and the Middle East. Travel Retailand continuing its expansion into women's fragrances, body care and home care products.
The Fine Fragrances segment benefits from very solid market dynamics, marked by double-digit growth, high profitability and consistent performance, giving it great resilience over the long term. Beauty is a natural extension of Kering's luxury universe, and the Group is confident in the long-term value-creation potential of this strategic market segment for the Group and its Houses.
The cash transaction is expected to close in the second half of 2023, subject to approval by the relevant competition authorities.
François-Henri Pinault, Chairman and CEO of Kering, declared: " The acquisition of Creed, which is Kering Beauté's first strategic initiative, demonstrates our ambition to build a solid position for the Group in the most exclusive segment of this category. I am delighted that our assets and values are now united around this entrepreneurial family spirit and shared taste for excellence to accelerate our development in beauty, and I am delighted to see Creed join Kering's Luxury Houses. "
Jean-François Palus, Chief Operating Officer of Kering, commented: " Synonymous with exclusivity and creativity, the House of Creed is recognized as one of the world leaders in haute parfumerie, and this acquisition will support and amplify our development in this segment. It marks a milestone in the development of Kering Beauté, while we are more convinced than ever of the great potential of our brands in this category. "
Raffaella Cornaggia, General Manager of Kering Beauté, added: " Creed's positioning in the fine fragrance market is unique, and this transaction presents clear fundamentals and mutual benefits in terms of expertise, distribution network and geographic presence. We look forward to working with CEO Sarah Rotheram and her passionate team to continue building Creed's success worldwide. "
