French luxury group Kering expands its new beauty division with the acquisition of 100% of heritage fragrance brand Creed from funds controlled by BlackRock Long Term Private Capital Europe and current Chairman Javier Ferrán.

Established in 1760 by James Henry Creed, the House of Creed is the largest global independent player in the high-end fragrance market. Creed is particularly known for its men’s fragrances, including the iconic Aventus, which represent 65% of its global turnover. Creed currently employs 700 people and distributes its fragrances in 1,400 points of sale and 36 own stores.

Over the past years, Creed has delivered fast-paced, double-digit growth. For the full year ended March 31, 2023, Creed generated revenue of more than EUR 250 million.

Through this operation, Kering Beauté acquires a brand whose growth potential is perceived as significant, particularly in China, in thebtravel retail and in e-commerce channels, as well as in new categories, including women’s fragrances, and body and home products. The move also provides Kering Beauté with the required scale, as well as a platform supporting the future development of other fragrance franchises, by leveraging in particular Creed’s global distribution network and its production site near Fontainebleau, France.

“The acquisition of Creed represents Kering Beauté’s 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,” commented François-Henri Pinault, Chairman and Chief Executive Officer of Kering.

“Creed has a unique positioning in the fragrance market. We see a very compelling rationale and mutual strategic benefits in terms of expertise, network, and geographical footprint. We look forward to working with CEO Sarah Rotheram and her passionate team to continue to drive Creed’s success worldwide,” highlighted Raffaella Cornaggia, CEO of Kering Beauté.

The all-cash transaction is expected to close in the course of H2 2023, subject to clearance by the relevant competition authorities.