Luxury fragrance house Creed, renowned for its heritage and unique scents, is set to join forces with Kering Beauté, marking a significant milestone for both companies. In a recent announcement, Kering Beauté revealed its agreement to acquire 100% of Creed from BlackRock Long Term Private Capital Europe and Chairman Javier Ferrán.
With a history dating back to 1760, the House of Creed has established itself as a prominent player in the global high-end fragrance market. The brand boasts a remarkable collection of sophisticated perfumes, including the iconic Aventus.
For Kering Beauté, this acquisition represents a substantial leap forward and a strategic move in their pursuit of growth. The addition of Creed aligns seamlessly with Kering Beauté’s existing portfolio of renowned luxury brands, instantly providing the company with the necessary scale and a strong financial foundation. Furthermore, the acquisition opens doors for future development within Kering Beauté’s fragrance franchises, thanks to Creed’s global distribution network.
François-Henri Pinault, Chairman and Chief Executive Officer of Kering, commented: “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. 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.”
Jean-François Palus, Group Managing Director of Kering, declared: “The House of Creed is recognized as one of the few leading global luxury fragrance brands, synonymous with exclusivity and creativity. We are confident that this landmark acquisition will facilitate and amplify our development in fragrance. This is a milestone in the development of Kering Beauté, as we believe more than ever in the strong potential of our brands in beauty.”
While respecting Creed’s rich heritage and maintaining its high-end brand image, Kering Beauté aims to unlock the brand’s untapped potential across various regions, channels, and product categories. This includes accelerating Creed’s expansion in China and the Travel Retail sector, as well as broadening its feminine fragrance portfolio, and exploring opportunities in the body and home categories.
Raffaella Cornaggia, CEO of Kering Beauté, highlighted: “Creed has a unique positioning in the fragrance market. We see a very compelling rationale and mutual strategic benefits in terms of expertise, network, and geographical footprint. We look forward to working with CEO Sarah Rotheram and her passionate team to continue to drive Creed’s success worldwide.”
The high-end luxury fragrance segment is experiencing robust market dynamics, characterized by double-digit growth, remarkable profitability, and consistent revenue generation. As Kering Beauté extends its reach into the beauty category, it capitalizes on the natural synergy between fragrance and luxury, ensuring lasting value for the company and its prestigious houses.
André Bourbonnais, Global Head of Long Term Private Capital at BlackRock, said: “We are pleased and honored to have partnered with the Creed family and Creed Executive Chairman and BlackRock LTPC Operating Partner, Javier Ferrán, who has been critically important in the sourcing of and value creation for Creed. Our partnership has helped us to further grow this world-class business through geographic and channel expansion, new product development and a focused marketing strategy. This transaction is highly emblematic of BlackRock LTPC’s strategy of investing in high-quality companies and actively collaborating with management teams to create value.”
Dag Skattum, Head of European Office of Long Term Private Capital at BlackRock, said: “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.”
The completion of this all-cash transaction is expected to occur during the second half of 2023, pending clearance from relevant competition authorities. With the acquisition of Creed, Kering Beauté takes a significant stride towards solidifying its position as a global leader in the luxury fragrance sector.
