The Ownership Of Creed Fragrance: A Complex Story

Creed Fragrances, the Anglo-French perfume house, was acquired by Kering, the French luxury group, in June 2023. Kering, which owns brands such as Gucci, Balenciaga, and Yves Saint Laurent, bought Creed from BlackRock Long Term Private Capital Europe and current chairman Javier Ferrán. Creed, established in 1760, is known for its perfumes such as Aventus and is the second-largest brand in the high-end fragrance market in terms of sales.

Creed was acquired by Kering for €3.5 billion in 2023

Creed, the high-end fragrance house, was acquired by Kering for €3.5 billion in 2023. This acquisition was Kering Beauté's first strategic initiative, marking its most significant step forward into the luxury beauty sector.

Kering, a French luxury group, acquired Creed from funds controlled by BlackRock Long Term Private Capital Europe and current chairman Javier Ferrán. Creed, established in 1760, is known for its best-selling Aventus fragrance and has a network of about 1,400 points of sale, including 36 branded stores. The company generated revenue of more than €250 million in the year ending March 31, 2023.

Kering described the deal as a major step for the company, calling Creed a perfect fit with its portfolio of luxury brands. Kering plans to maintain Creed's high-end reputation and heritage while unlocking its potential in markets such as China and expanding its feminine fragrance portfolio. Creed's global distribution network will also support the future development of other Kering Beauté fragrance franchises.

The acquisition of Creed by Kering is expected to close in the second half of 2023, subject to clearance by relevant competition authorities. This move by Kering highlights the attractiveness of the high-end luxury fragrance segment, which benefits from strong market dynamics fuelling double-digit growth, high profitability, and significant revenue recurrence.

Kering is a French multinational company specialising in luxury goods

Kering is a French multinational company that specialises in luxury goods. Headquartered in Paris, the company owns several high-end fashion houses, including Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, and Yves Saint Laurent. Kering has a strong focus on sustainable development in the luxury fashion industry and has committed to reducing its environmental impact and becoming carbon-neutral.

The history of Kering can be traced back to 1962 when François Pinault founded the timber-trading company Pinault S.A. in Brittany, France. Over time, Pinault S.A. expanded into the retail sector, becoming the conglomerate Pinault-Printemps-Redoute (PPR) in 1994. In 2013, the group was rebranded as Kering, reflecting its new focus on luxury goods. François-Henri Pinault, son of the founder, has been the president and CEO of Kering since 2005.

Kering has a diverse portfolio of fashion, leather goods, and jewellery brands. In addition to its well-known fashion houses, Kering also owns Kering Eyewear, a luxury eyewear production arm, and Kering Beauté, a cosmetics division. The group has a large global presence, with 46,000 employees and 1,381 stores worldwide, as of 2023.

In June 2023, Kering made a significant move by acquiring Creed, the high-end luxury fragrance house. Creed, established in 1760, has a rich history and is known for its unique and sophisticated perfumes. This acquisition marked Kering's first major step into the beauty segment, with a focus on makeup for its luxury brands. With this addition to its portfolio, Kering continues to expand its presence in the luxury goods market.

Creed was previously owned by BlackRock

Creed, the high-end fragrance brand, was previously owned by BlackRock. In February 2020, the private equity group BlackRock announced that it would become the majority shareholder of Creed. Creed was then acquired by Kering for €3.5 billion in June 2023.

BlackRock Long Term Private Capital Europe and Javier Ferrán, the Spanish businessman and chairman of Diageo, had control of the luxury fragrance brand. Creed's CEO, Olivier Creed, stated that Ferrán and BlackRock LTPC were "ideal partners for Creed, given their collaborative approach to working with their companies and their long-term orientation."

BlackRock's acquisition of Creed marked a shift from the brand's tight family management, as Creed was previously a family-owned business. The perfume house was supposedly founded in 1760 by James Henry Creed as a tailoring house in London, England, though the earliest evidence of Creed's existence dates back to the late 1960s or early 1970s.

During BlackRock's ownership, Creed experienced a decline in the performance and longevity of its fragrances, according to some customers. There were concerns about the quality and value of the perfumes, with some believing that BlackRock's primary motivation was profit rather than maintaining the high standards Creed was known for.

BlackRock's sale of Creed to Kering, a French multinational luxury goods company, ended Creed's status as a niche company. Kering's portfolio includes renowned luxury brands such as Gucci, Balenciaga, Bottega Veneta, and Yves Saint Laurent. Kering's acquisition of Creed marked its first significant step into the luxury beauty sector.

Kering described the deal as a major strategic initiative, aiming to preserve Creed's rich heritage and high-end brand image while unlocking its potential in new markets, particularly in China and travel retail. The transaction was an all-cash deal, with Kering acquiring 100% of Creed.

Creed was founded in 1760 by James Henry Creed

Creed, the high-end fragrance brand, was founded in 1760 by James Henry Creed as a tailoring house. The company was first established in London, England, and served the royal families of Europe, including Queen Victoria and Empress Eugénie. Over time, Creed expanded its business to include fragrance creation, with its first eponymously named scent being a traditional eau de cologne with a matching aftershave.

The House of Creed has a long and disputed history, with some inconsistencies and a lack of historical evidence before the 1970s. However, it is known for its self-styled image and association with luxury and royalty. In the 21st century, Creed fragrances became widely popular, with its breakthrough success in the mid-1980s with the Green Irish Tweed fragrance. The brand has also gained attention for its marketing strategies, including associating its products with celebrities and historical figures.

In 2020, after decades of tight family management, Creed was sold to BlackRock Long Term Private Capital and Javier Ferrán, a Spanish businessman. This marked a shift in ownership and a move towards corporate mainstream. In 2023, Creed was acquired by Kering, a French luxury conglomerate, for a sum of €3.5 billion. Kering, known for its luxury brands such as Gucci and Yves Saint Laurent, saw Creed as a strategic acquisition to expand its presence in the high-end fragrance market, particularly in China and travel retail.

Today, Creed continues to be recognised as a leading global luxury fragrance brand, known for its sophisticated and timeless perfumes. The current generation of creative directors includes Olivier Creed and his son, Erwin Creed, who carry on the tradition of fragrance creation within the House of Creed.

Creed is known for its men's fragrances, including its best-selling Aventus fragrance

Creed is a Paris-based perfume house known for its self-styled history and name-dropping. It has boutiques in several cities worldwide, including Paris, London, New York, and Dubai. Creed is known for its men's fragrances, including its best-selling Aventus fragrance.

Aventus is a contemporary masculine scent that celebrates strength, power, vision, and success. It is a smooth and refreshing scent, with opening top notes of pineapple and bergamot twisted around a fruity apple accord. The heart notes of birch and jasmine add depth to this scent, while the base notes of oakmoss, vanilla, and Creed's signature ambergris provide an elegant finish.

Aventus was created by sixth-generation Creed descendant Olivier Creed to acknowledge the 250th year of The House of Creed. Olivier and his son Erwin create each fragrance using the 4,000-year-old Millésimé technique, where ingredients are hand-weighed and left to macerate. This technique ensures the quality and craftsmanship that Creed is known for.

Aventus has been a commercial success, enabling Creed to open its New York boutique. It stands as one of the most revered and recognised creations in artisanal perfumery, adored by fragrance enthusiasts and luxury tastemakers. Aventus is widely considered synonymous with modern-day masculinity, though it is also worn and loved by women worldwide.

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