Kering Expands Into Beauty with Creed Acquisition — Retail Bum

On Monday, June 26, 2023, Gucci’s parent company Kering announced its plans to acquire Creed, a prestigious French fragrance brand.

The deal marks Kering’s first acquisition since it announced plans to establish an internal cosmetics venture earlier this year and hired a former Estée Lauder executive to spearhead the company’s entry into the segment.

“The acquisition clearly marks a major step for Kering Beaute, allowing it to reach critical mass in this category,” said Raffaella Cornaggia, CEO of Kering’s beauty division.

Since the COVID-19 lockdowns, there has been a notable increase in the popularity of high-end fragrances and niche beauty brands as consumers’ desire for self-pampering has grown.

The deal will see Kering acquire Creed in an all-cash transaction from funds controlled by BlackRock and the current chairman, Javier Ferran.

According to Piral Dadhania, an analyst at RBC, the estimated value of the deal falls within the range of €1 billion to €2 billion, with a higher likelihood of being toward the upper end of the spectrum. Dadhania arrived at this estimate by considering the recent acquisition of Aesop by L’Oreal as a reference point.