Luxury retailer Kering has announced the acquisition of French luxury perfume manufacturer Creed. The amount of the deal amounted to $3.83 billion. Information about the purchase appeared six months after the owner of Gucci announced his intention to create his own perfume business.
The deal to buy Creed and from the funds controlled by BlackRock and the company’s board of directors chairman, Javier Ferran, will be closed by the end of 2023.
Creed’s sales for the past fiscal year totaled more than 250 million euros and the business had a profit margin of more than 50%. The French brand’s net profit is estimated at €150 million annually. Thus, the multiplier after the transaction amounted to about 23 ebitda, which confirms the brand’s strength.
Creed was founded in London in the mid-18th century and initially specialized in creating clothes. In the mid-19th century, Creed ventured into luxury perfumery and moved to Paris.
Sales of the Kering group, which owns Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Boucheron, Brioni among others, reached 20.4 billion euros last year. Following LVMH, it is among the largest luxury manufacturers and retailers.
Bottega Veneta and Alexander McQueen brands owned by the group are expected to be included in the company’s new perfume and cosmetics division.
