In a significant move, Kering Beauté, the luxury group, has announced its agreement to fully acquire Creed, the heritage fragrance house. The deal, brokered with BlackRock Long Term Private Capital Europe and the current Creed chairman, Javier Ferrán, marks a crucial step for Kering Beauté towards its strategic growth in the future.
The acquisition serves as an essential addition to Kering Beauté’s portfolio of esteemed luxury brands. Furthermore, it offers Kering Beauté the necessary scale, financial profile, and a platform to bolster the future development of its other fragrance franchises. The strategy is primarily centered around leveraging Creed’s expansive global distribution network.
Kering Beauté plans to further exploit Creed’s potential across various geographies, channels, and categories while maintaining Creed’s rich heritage and brand image. The focus will be on accelerating Creed’s growth in China and in the travel retail sector, alongside expanding its female fragrance portfolio, body and home categories.
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The completion of the acquisition is expected in the second half of 2023, contingent on approval from the relevant competition authorities, as per Kering’s statement.
François-Henri Pinault, Kering Beauté’s chairman and CEO, emphasized that the acquisition of Creed is the company’s first strategic initiative towards solidifying a potent position in the luxury beauty segment.
Creed has made considerable strides in the luxury fragrance market. The brand has demonstrated impressive growth and profitability with high EBITDA margins in recent years, boasting revenues exceeding €250 million for the year ending March 31, 2023.
In related news, beauty giant L’Oréal recently announced its acquisition of Aesop, a luxury skincare brand, for US$2.5 billion, opening a new chapter in the luxury brand’s growth, as reported by Natura & Co.
This acquisition spree in the luxury beauty sector underscores the intense competition and strategic investments by industry leaders to further consolidate their market position. This news was first reported on Marketing Interactive.
