Kering snaps up fragrance label Creed for new beauty division

@KeringGroup/ Twitter

Gucci owner Kering said on Monday it had struck a deal to buy high-end French fragrance label Creed, its first acquisition since flagging intentions earlier this year to create an in-house cosmetics business.

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

The former Estée Lauder executive was appointed in February to lead the French group's push into the segment.

High-end fragrances and niche beauty labels have enjoyed a surge in popularity since the COVID-19 lockdowns fuelled appetite for self-pampering.

The all-cash deal to acquire 100 per cent of the fragrance house from funds controlled by BlackRock and by the company's current chairman Javier Ferran is expected to close in the second half this year. Financial details were not provided.

RBC analyst Piral Dadhania estimated the deal worth between €1 and €2 billion, more likely in the upper end of the range, citing the recent purchase of Aesop by L'Oreal.

Kering plans to expand Creed's products for women, candles and home fragrances as well as its geographic presence, notably in China, executives said.

The label, best known for its Aventus fragrance, which costs €210 ($229), counts 700 employees and generated €250 million in annual sales last year.

As for potential further acquisitions by the Kering group, the company is "attentive to M&A opportunities", said Kering Chief Financial Officer Jean-Marc Duplaix. "We are very selective," Duplaix added.

More from Business

Coming Up on Dubai Eye

  • The Agenda

    10:00am - 1:00pm

    Broadcasting every weekday, Georgia Tolley goes beyond the headlines to speak to government ministers, decision makers, analysts and local experts to find out how the news will impact those of us living in the UAE.

  • Afternoons with Helen Farmer

    1:00pm - 4:00pm

    Every weekday afternoon, Helen Farmer will help you to navigate the highs and lows of life in the UAE. Stay up to date with what’s happening and where to go.

BUSINESS BREAKFAST LATEST

On Dubai Eye

  • Is There Sufficient House Supply In UAE

    Dubai’s current population is more than double compared to almost twenty years ago, which now stands at 3.7 million. Lots of families are also moving to the UAE now. So what does it mean for the property market?

  • Noon's First Female Delivery Driver

    Glory Ehirim Nkiruka is Noon’s first ever female delivery driver. In her first ever interview, she explained why she loves her job, despite the heat!