Kering expands its cosmetics division with the acquisition of Creed

Kering acquires luxury perfume brand Creed.

This is the first time that the cosmetics division of the luxury conglomerate of the same name, Kering Beauté, has taken over a brand and integrated it into the company’s own portfolio. The full acquisition is expected to be completed in the second half of the year, subject to approval by the relevant competition authorities, Kering announced on Tuesday. The purchase price was not disclosed.

The acquisition of Creed provides Kering with the scale, financial profile and platform to further grow Kering Beauté’s perfume business. The acquisition will also allow Kering to leverage Creed’s global distribution network. In addition, the group is confident that expansion in the beauty sector will create lasting value for the group and its fashion houses, including Bottega Veneta, Saint Laurent and Gucci.

“The acquisition of Creed is Kering Beauté’s first strategic initiative and underscores our commitment to build a strong position in the luxury beauty segment,” said Francois-Henri Pinault. “I’m thrilled that today our stories and values ​​around the spirit of family entrepreneurship and excellence are coming together to accelerate our journey in beauty, and I’m excited to see the brand join the Kering luxury houses collection.”

To date, Creed has been considered one of the most important independent luxury perfumers. The brand was founded in 1760 by James Henry Creed and is best known for the men’s classic Aventus. Kering intends to preserve Creed’s brand image while realizing the full potential of the brand, the statement said.

In the fiscal year that ended in March, Creed achieved sales of 250 million euros. The brand’s fragrances are currently available at around 1,400 points of sale.

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