French luxury group Kering, known for its ownership of iconic brands like Gucci, is said to have made a substantial investment of 3.5 billion euros ($3.83 billion) to acquire the prestigious French fragrance label Creed. The deal, which is expected to be finalized in the latter half of this year, involves the complete acquisition of the renowned fragrance house. This strategic move by Kering is a crucial step towards establishing its own cosmetics business.
The exact financial terms of the transaction were not disclosed initially, primarily due to concerns surrounding Creed’s impressive profit margins. However, with Kering’s significant investment, it is evident that the perfume brand’s worth and market potential played a crucial role in sealing the deal. Unfortunately, neither Kering nor Creed have commented on the acquisition despite multiple requests for clarification.
Kering’s decision to acquire Creed aligns with its long-term vision of expanding its portfolio and diversifying its business ventures. By integrating the luxury fragrance label into its operations, Kering aims to capitalize on the success and reputation of Creed, known for its exclusive and high-end perfumes. This strategic move not only enhances Kering’s presence in the beauty and cosmetics industry but also showcases their commitment to offering an array of luxury products to their discerning clientele.
Creed’s rich history and heritage, dating back to its establishment in 1760, have cemented its status as a traditional and respected fragrance house. The brand is renowned for its craftsmanship, attention to detail, and exclusive use of quality ingredients. This acquisition by Kering not only secures a prestigious brand under its umbrella but also allows for potential synergies with its existing luxury brands.
Overall, Kering’s acquisition of Creed marks a significant milestone in its pursuit of establishing an in-house cosmetics business. By strategically investing in renowned fragrance houses like Creed, Kering aims to strengthen its position and expand its reach in the ever-evolving beauty industry.
Useful links:
1. Kering Official Website
2. Creed Official Website
