The luxury fashion group Kering has taken out a bond in the amount of 3.8 billion euros, which it says it wants to use in particular to finance the takeover of the perfume house Creed. The company added that the bond issue, which is in line with its active cash management, will also allow it to increase its financial flexibility.
Kering’s acquisition of Creed was announced in June, when the group said it was preparing to acquire 100 percent of the perfumery’s capital from funds controlled by asset manager BlackRock and Javier Ferrán, the company’s former president . While the financial terms of the agreement were not initially disclosed, the Financial Times reported that the sum totaled around 3.5 billion euros.
The acquisition fits Kering Beauté’s brand portfolio, which aims to leverage Creed’s potential across geographies, channels and categories, as well as expand its presence in China and travel retail. Kering also said it is looking to expand the brand’s women’s fragrance portfolio, eyeing the personal care and home categories as future opportunities.
In the fiscal year that ended at the end of March, Creed generated sales of more than 250 million euros in what it says is a “very lively market for high-quality perfumery”.
This translated and edited post was previously published on FashionUnited.uk.