Kering Beauté Acquires Creed, the High-end Luxury Heritage
Fragrance House
Communiqué - Acquisition de Creed - 26 06 23 FR
PRESS RELEASE |
June 26, 2023 |
KERING BEAUTÉ
ACQUIRES CREED,
THE HIGH-END LUXURY
HERITAGE FRAGRANCE HOUSE
Iconic heritage fragrance House
with strong legacy recognized for crafting unique scents,
harnessing exquisite natural ingredients
Largest global independent player in the
fast-growing high-end luxury fragrance segment
A major step for Kering Beauté, creating
a sizeable platform for future growth, in a
category that Kering sees as strategic
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’s 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, Chairman and Chief
Executive Officer of Kering, 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, Group Managing Director of
Kering, declared: “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 this landmark
acquisition will facilitate and amplify our development in
fragrance. This 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, highlighted: “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.”
André Bourbonnais, Global Head of Long Term
Private Capital at BlackRock, said: “We are pleased and honored to
have partnered with the Creed family and Creed Executive
Chairman and BlackRock LTPC Operating Partner, Javier
Ferrán, who has been critically important in the sourcing of
and value creation for Creed. Our partnership has helped us to
further grow this world-class business through geographic and
channel expansion, new product development and a focused marketing
strategy. 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.”
Dag Skattum, Head of European Office of Long
Term Private Capital at BlackRock, said: “It has been a privilege
to build on the Creed family legacy and to have partnered with such
a dedicated and talented management team, led by CEO Sarah
Rotheram, to further strengthen Creed’s iconic standing. We are
confident that Kering is the right home for such a unique heritage
brand, and that it will continue to thrive under their
stewardship.”
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.
AUDIOCAST
An
audiocast for analysts and investors will be held
at 6:15 p.m. (CEST) on Monday, June 26,
2023. It may be accessed here.
The slides (in PDF
format) will be available ahead of the audiocast
athttps://www.kering.com/en/finance
A replay of the
webcast will also be available at www.Kering.com.
About
Kering
A global Luxury group, Kering manages the
development of a series of renowned Houses in Fashion, Leather
Goods and Jewelry: Gucci, Saint Laurent, Bottega Veneta,
Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo,
Qeelin, as well as Kering Eyewear and Kering Beauté. By placing
creativity at the heart of its strategy, Kering enables its Houses
to set new limits in terms of their creative expression while
crafting tomorrow’s Luxury in a sustainable and responsible way. We
capture these beliefs in our signature: “Empowering Imagination”.
In 2022, Kering had over 47,000 employees and revenue of €20.4
billion.
About BlackRock
LTPC
BlackRock LTPC is an innovative private equity
strategy focused on investing in high-quality businesses and value
creation through active collaboration with management teams. The
strategy's flexible duration and prudent approach to leverage
preserve optionality for growth and help enable compounded capital
appreciation. LTPC's team of 21 professionals are based in New York
and London and invest across North America and Western Europe. LTPC
is backed by BlackRock, Inc., which manages $320 billion in
alternative investments and commitments on behalf of clients
worldwide as of March 31, 2023. For additional information on
BlackRock, please visit www.blackrock.com/corporate.
Contacts
Press |
|
|
Emilie
Gargatte |
+33 (0)1 45 64 61
20 |
emilie.gargatte@kering.com |
Marie de
Montreynaud |
+33 (0)1 45 64 62
53 |
marie.demontreynaud@kering.com |
|
|
|
Analysts/investors |
|
|
Claire
Roblet |
+33 (0)1 45 64 61
49 |
claire.roblet@kering.com |
Julien
Brosillon |
+33 (0)1 45 64 62
30 |
julien.brosillon@kering.com |
- Communiqué - Acquisition de Creed - 26 06 23 FR
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