Kering acquires Creed for new beauty division
Kering Beauté has acquired fragrance label Creed as it continues its commitment to developing a "strong position" in the luxury beauty segment.
The deal to acquire 100% of the fragrance house from funds controlled by BlackRock and the company's current chairman Javier Ferrán is expected to close in the second half this year.
Established in 1760 by James Henry Creed, the House of Creed is the "largest global independent player in the high-end fragrance market".
The acquisition will help 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.
It will also provide Kering Beauté with the "required scale, an outstanding financial profile and a platform, supporting the future development of other Kering Beauté fragrance franchises, by leveraging Creed’s global distribution network".
François-Henri Pinault, Chairman and CEO of Kering, said: "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."
The move marks a "major step" for Kering Beauté as it looks to support its brands, such as Bottega Veneta, Balenciaga and Alexander McQueen, develop an expertise in the beauty category.
Earlier this year, the company appointed Raffaella Cornaggia as CEO of Kering Beauté. Reporting to the group's Managing Director Jean-François Palus, Cornaggia is supported by a team of "seasoned professionals".