Why Kering Chose Creed for Its First Big Beauty Acquisition

Kering is wasting no time in realising its beauty ambitions.

On Monday, the French luxury conglomerate announced it had snapped up Creed, the niche fragrance house known for its Aventus scent, from BlackRock Long Term Private Capital Europe and chairman Javier Ferrán in an all-cash transaction. Reuters reported Kering may have paid up to $2 billion for Creed, which the group said generated annual revenues of over €250 million ($273 million) for the year ending March 2023 and “very high” margins.

The deal is the first major acquisition for Kering Beauté, the company’s four-month-old beauty division headed by longtime Estée Lauder executive Raffaella Cornaggia. The unit is developing beauty strategies in the category for Kering brands including Balenciaga, Alexander McQueen and Bottega Veneta (its two biggest labels, Gucci and Saint Laurent, are locked in long-term licensing agreements). Monday’s acquisition will boost the group’s authority in high-end fragrance.

“Creed has a unique positioning in the fragrance market,” Cornaggia said in a statement. “We see a very compelling rationale and mutual strategic benefits.”