Gucci Owner Kering Buys Iconic Fragrance Brand Creed

Kering SA PPRUF PPRUY disclosed a deal to acquire high-end luxury fragrance brand Creed in cash for an undisclosed amount. 

The company's Kering Beauté is acquiring the business from funds backed by BlackRock Long Term Private Capital Europe and current Chairman Javier Ferrán.

Creed, incepted in 1760 and serving Europe's royal families, has delivered double-digit growth and strong EBITDA margins over the past few years.  

The acquisition will complement the Kering Beauté portfolio, supporting the creation of other Kering Beauté fragrance franchises by enhancing the global distribution network in the future. 

The company plans to preserve Creed's rich heritage and high-end brand image, aid acceleration in China and Travel Retail, and boost the feminine fragrance, body, and home categories.

The transaction is expected to close in H2 2023, subject to clearance by authorities.

"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," said Jean-François Palus, Group Managing Director.

Also Read: Kering' New Gucci Designer To Join In Q2: Report

Price Action: PPRUF shares traded higher by 1.84% at $557.23 on the last check Monday.