French luxury conglomerate Kering Beauté has agreed to acquire Creed, a heritage fragrance house, in an all-cash deal. The acquisition is expected to be completed in the second half of the year, pending approval from competition authorities. Creed, which was established in London in 1760, is currently the leading independent player in the high-end fragrance market. This strategic move by Kering Beauté aims to expand the company’s presence in the growing beauty market.
Kering Beauté, the beauty division of the luxury giant, sees the purchase of Creed as a significant step forward. It will add to their portfolio of renowned luxury brands and provide them with the required scale, financial profile, and global distribution network. The company plans to preserve Creed’s rich heritage and high-end brand image while unlocking its potential in different regions, channels, and categories. Their focus will be on accelerating development in China and travel retail, expanding the feminine fragrance portfolio, and entering the body and home categories.
This acquisition aligns well with the current state of the luxury fragrance sector, which is experiencing strong growth, profitability, and recurring revenue. Kering Beauté believes that the beauty category is a natural extension of their luxury universe, and they are confident that expanding in this segment will create lasting value for the group and its brands.
Creed initially gained recognition for its tailoring business but later became renowned for its perfumes. The launch of their best-selling scent brand, Aventus, in 2010 contributed to the company’s success. Creed fragrances are currently available in approximately 1,400 locations globally. In recent years, the company has achieved double-digit growth and remarkable profitability, generating over €250 million in revenue in the year ending March.
François-Henri Pinault, Chairman and CEO of Kering, expressed the significance of this acquisition as Kering Beauté’s first strategic move in the luxury beauty segment. Jean-François Palus, Group Managing Director of Kering, emphasized how the acquisition will facilitate and amplify the company’s development in the fragrance sector, calling it a milestone for Kering Beauté. Raffaella Cornaggia, CEO of the beauty unit, expressed excitement about the partnership with Creed’s CEO Sarah Rotheram and her team, highlighting the compelling rationale and mutual strategic benefits of this acquisition.
Useful links:
1. Kering Beauté
2. Creed
