Kering Group’s beauty arm, Kering Beaute, has acquired 100 per cent of the luxury fragrance brand Creed from funds controlled by BlackRock Long Term Private Capital Europe and current chairman Javier Ferran.
The value of the acquisition has not yet been disclosed. The all-cash transaction is expected to complete in the second half of this year. Reuters reported the deal may be worth up to 2 billion euros (US$2.2 billion).
Creed has a network of 36 branded stores and is distributed through about 1400 doors globally and generated revenue of more than 250 million euros (US$273 million) for the year to March 31.
“The acquisition of Creed represents Kering Beaute’s first strategic initiative, and demonstrates our commitment to developing a strong position in the luxury market,” said Francois-Henri Pinault, chairman and CEO of Kering.
The House of Creed was founded in 1760 by James Henry Creed a tailor serving the royal families of Europe. Since then, the brand has grown into one of the largest global independent players in the high-end fragrance market and is known for its signature Aventus fragrance.
Kering said the acquisition of Creed will support the development of other Kering Beaute fragrance franchises, by leveraging in particular Creed’s global distribution network.
The company also added it will further unlock Creed’s potential across geographies, channels, and categories, notably through the acceleration of its development in China and in Travel Retail, and further expansion of the feminine fragrance portfolio, body and home categories.
“This transaction is highly emblematic of BlackRock LTPC’s strategy of investing in high-quality companies and actively collaborating with management teams to create value,” said Andre Bourbonnais, global head of Long Term Private Capital at BlackRock.
Meanwhile, the French luxury group Kering reported just a 1 per cent increase in sales in the first quarter, as star label Gucci benefited less than rivals from a rebound in China and revenues fell sharply in the US.
