Kering SA, the owner of Gucci, has agreed to buy Creed in an all-cash deal as the luxury conglomerate expands in the market for high-end fragrances.
Kering’s beauty unit is buying 100 percent of Creed from funds controlled by BlackRock Inc and its chairman Javier Ferran, the Paris-based luxury group said in a statement on Monday.
Further terms of the transaction were not disclosed.
Photo: Reuters
Creed was established in 1760 by James Henry Creed as a tailoring house that served the royal families of Europe. It still has family involvement.
The French group said it planned to “unlock” Creed’s potential, particularly in China and in travel retail, and expand the feminine fragrance portfolio.
The company is known for its men’s fragrance Aventus. Creed generated annual revenue of more than 250 million euros (US$273.5 million) in the year to March 31.
The acquisition comes after Kering named Raffaella Cornaggia as chief executive of its beauty unit in February as the company aims to grow a segment where rivals such as Hermes International and LVMH Moet Hennessy Louis Vuitton SE have performed well.
Kering has been adding cash to its war chest for potential acquisitions, raising significant proceeds from the sale of its Puma SE stake.
Last year, Kering held talks to buy Tom Ford, the designer brand known for its perfume offering, people familiar with the matter said.
Estee Lauder eventually bought Tom Ford.
Kering is trying to revive its biggest brand Gucci. In April, it said that Gucci sales barely grew in the first quarter, as the Italian label failed to win over more shoppers to products such as Double G belts and furry Princetown slippers.
Kering’s performance seemed particularly lackluster when compared with rivals LVMH and Hermes, which posted double-digit sales growth in the first quarter.
At the time, Kering chief executive Francois-Henri Pinault said that while the performance of the company was mixed, it was starting to see a “gradual improvement in activity month after month.”
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