Kering Beauté acquires Creed, expanding luxury fragrance portfolio

Kering has acquired its first standalone beauty business with the purchase of iconic fragrance house Creed. Adding to its portfolio of fashion and leather goods, eyewear and jewellery houses, Kering Beauté expands its already impressive luxury fragrance portfolio from its various brands, solidifying its position in the industry.

The luxury fragrance segment is experiencing robust market dynamics, with double-digit growth, high profitability, and significant revenue recurrence. Kering sees the beauty category as a natural extension of its luxury universe and believes that expanding into this strategic segment will create long-term value for the Group and its luxury Houses.

Founded in 1760, Creed has earned a prestigious reputation as a leading fragrance house. The brand's collection of exquisite perfumes, including the iconic Aventus, has established it as the largest independent player in the global luxury fragrance market. The acquisition aligns with Kering Beauté's portfolio of brands and provides the company with the necessary scale and financial profile to support the future growth of its fragrance franchises.

Kering Beauté aims to unlock the brand's potential across different geographies, channels, and categories, further expanding its presence in China and Travel Retail markets. Furthermore, Kering Beauté plans to expand Creed's feminine fragrance portfolio and venture into the body and home categories.

The acquisition is expected to be an all-cash transaction, set to close in the second half of 2023, pending clearance from relevant competition authorities, Kering said in a statement. François-Henri Pinault, Chairman and Chief Executive Officer of Kering, expressed his excitement about the acquisition and its alignment with the company's commitment to establishing a strong presence in the luxury beauty segment. This landmark acquisition represents a significant milestone in the growth of Kering Beauté, amplifying its development in the fragrance sector and affirming its confidence in the potential of its beauty brands.

For the full year ended March 31, 2023, Creed generated revenue of more than 250 million euros.