Kering Beauty is returning to the high-end perfumery and cosmetics sector by acquiring the French brand Creed, with estimated sales of 250 million euros. The deal is expected to be finalized in December 2023.
Founded in 1760 by James Henry Creed, Maison Creed currently has an estimated revenue of 250 million euros (Kering)
The luxury group Kering has announced its intention to acquire the renowned French perfume house Creed. The deal is expected to finalize in the second half of this year, most likely in December. For Javier Ferran, President of Creed, this union offers a promising opportunity to boost the brand's international development, particularly in China, where demand for French luxury fragrances has risen sharply since the recovery of the post-health-crisis markets.
Kering, in turn, is looking to expand its portfolio of haute perfumery and cosmetics brands following Raffaella Cornaggia's arrival at the beauty division's helm last February. Creed currently generates sales of around 250 million euros, as Raffaella Cornaggia told the press during a conference call. The exact acquisition amount has not been disclosed yet but should be commensurate with the brand's prestige.
Founded in 1760 by James Henry Creed, the Maison Creed is based in Fontainebleau, near Paris. It rapidly established a reputation for the quality of its handcrafted, exclusive fragrances. According to details provided by Kering, the agreement calls for the acquisition of all Creed shares from funds controlled by BlackRock Investments - the world's largest asset management company ($6,000 billion in assets), founded and headed by Larry Fink - as well as from current Chairman Ferran.
Raffaella Cornaggia describes Creed as a "very profitable nugget" thanks to its 1400 selling points. The head of Kering's Beauty division is convinced of the brand's "very solid long-term growth prospects." This acquisition should also boost the travel-retail market for François-Henri Pinault's group, which is also significant for the group's other brands, from Bottega Veneta and Alexander McQueen to Balenciaga and Pomellato.
The company's most famous fragrances, such as "Aventus" and "Millesime Imperial," are currently well known in the Anglo-Saxon market, mainly in the USA and England. Kering withdrew from the beauty world in 2008 when L'Oréal acquired the Yves Saint Laurent Beauté brand. Since then, the Group has focused on fashion and lifestyle. The acquisition of Creed marks Kering's return to the cosmetics and fine fragrances market. The competition authorities are currently reviewing the financial transaction before it is finalized.
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