KERING BEAUTÉ ACQUIRES CREED, THE HIGH-END LUXURY HERITAGE FRAGRANCE HOUSE

Kering Beauté announces that it has signed an agreement to acquire 100% of 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 possesses a distinct collection of timeless and sophisticated perfumes, including the iconic Aventus.

The acquisition of Creed is a major step for Kering Beauté. A perfect fit with its portfolio of renowned 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.

While preserving Creed’s rich heritage and high-end brand image, Kering Beauté 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.

The high-end luxury fragrance segment benefits from strong market dynamics fueling double-digit growth, high profitability, and significant revenue recurrence driving long-term resilience through the cycle. The beauty category is a natural extension of Kering’ luxury universe, and the Group is confident its expansion in this strategic segment will create lasting value for the Group and its Houses.

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

François-Henri Pinault, Kering’s Chairman and Chief Executive Officer, commented,”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.”

Jean-François Palus, Kering’s Group Managing Director, added, “The House of Creed is recognized as one of the few leading global luxury fragrance brands, synonymous with exclusivity and creativity. We are confident that it will facilitate and amplify our development in fragrance. This landmark acquisition is a milestone in the development of Kering Beauté, as we believe more than ever in the strong potential of our brands in beauty.”

Raffaella Cornaggia, CEO of Kering Beauté, said, “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.”

Established in 1760 by James Henry Creed as a tailoring house serving the royal families of Europe, Creed has become a high-standing fragrance house and boasts a prestigious family heritage and a legacy testifying to a unique creative spirit. Olivier Creed and his son Erwin perpetuate this tradition today.

Creed is renowned for one of its best sellers, Aventus, which is consistently positioned remarkably high in the luxury fragrances rankings in key markets globally. Praised for its rich heritage, timeless scents, and unisex versatility, Creed is widely recognized for manufacturing artisanal essences of unrivalled quality using a traditional technique and for crafting highly distinctive and sophisticated scents.

Distinguished as a House driven by artistry and perfection, Creed is one of the very last luxury fragrance houses to carefully source, research, inspect, and commission their own natural raw ingredients, constantly seeking the finest and most exquisite throughout the globe.

Through its “Fragrance for the Future” framework, Creed ensures that its fragrances, created with the expertise and techniques of generations past, are sustainably produced in their laboratory in Fontainebleau on the outskirts of Paris.

Creed offers a tailored, elevated in-store experience through a network of 36 branded stores, and quality distribution through a total of circa 1,400 doors globally.

Over the past years, Creed has delivered fast-paced, double-digit growth and remarkable profitability with very high EBITDA margins, while never compromising on either product quality or brand equity. For the full year ended March 31, 2023, Creed generated revenue of more than €250 million.