Luxury and super premium fragrance brands have been hot properties for over a decade as many of the major multinationals extended their perfume footprints in the lucrative sector. Estée Lauder, for example, beefed up its fragrance stable with the acquisitions of Le Labo, By Kilian and Editions de Parfums Frederic Malle. Spanish fragrance heavyweight Puig acquired L’Artisan Parfumeur and Penhaligon’s in 2015 and took a majority stake in cult brand Byredo in a deal reportedly worth more than US$1 billion last year.
Kering Group, the world’s second largest luxury goods group after LVMH, signalled it was poised to capture a bigger slice of the luxury beauty and fragrance market in February. The Gucci owner announced the creation of Kering Beauté, a new in-house beauty division helmed by CEO Raffaella Cornaggia, a beauty industry heavyweight whose resume includes senior positions with The Estée Lauder Companies.
Kering Beauté has acquired 100 per cent of the high-end fragrance brand Creed – its first acquisition. The all-cash transaction from funds controlled by BlackRock Long Term Private Capital and current chairman Javier Ferran is expected to be finalised in the second half of the year subject to clearance by the relevant competition authorities. BlackRock acquired a majority shareholding in Creed in February 2020 and Ferran became chairman of the company’s board of directors and an investor.
Financial details were not disclosed but Reuters reported the deal to be valued at between one billion and two billion euros ( AUD$1.62 billion to AUD$3.25 billion).
Creed was founded in 1760 by James Henry Creed as a fine tailoring business and has become of the most significant independent brands in the luxury fragrance market worldwide. Bestselling fragrances include Aventus, Millesime Imperial, Silver Mountain Water and Green Irish Tweed.
For the full year ended March 31st this year, Creed generated revenue of more than 250 million euros (AUD$406.75 million). The brand has a global network of 36 branded stores and distribution through a total of circa 1400 doors worldwide.
Kering said the acquisition of Creed is a major step for Kering Beauté. A perfect fit with its renowned portfolio of luxury brands, it immediately provides Kering Beauté with the required scale, an outstanding financial profile, as well as a platform, supporting the future development of other Kering Beauté fragrance franchises, by leveraging in particular Creed’s global distribution network.
Future plans will further unlock Creed’s potential across geographies, channels and categories, notably through the acceleration of its development in China and travel retail, and further expansion of the feminine fragrance portfolio, body and home categories.
Francois-Henri Pinault, chairman and CEO of Kering said: “The acquisition of Creed represents Kering Beautés 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”.
For a list of official Creed stockists in Australia – go to www.creedperfume.com.au
The brand also opened a luxurious perfume boutique in Sydney’s iconic Strand Arcade last year.
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