Creed was established in 1760 by James Henry Creed as a tailoring house serving the royal families of Europe. It still has family involvement.

The French group said it planned to “unlock” Creed’s potential, particularly in China and travel retail, to expand its feminine fragrance portfolio. The company is known for its men’s fragrance Aventus. Creed generated annual revenue of more than €250 million (US$272 million) in the year leading up to March 31.

Creed is famous for its men’s fragrances. Photo: @creedboutique/Instagram
The acquisition comes after Kering named Raffaella Cornaggia to lead its beauty unit in February as the company aims to grow a segment where rivals such as Hermès International and LVMH Moët Hennessy Louis Vuitton SE have performed strongly.

Kering has been adding cash to its war chest for potential acquisitions, raising significant proceeds from the sale of its Puma SE stake.

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Last year, Kering held talks to buy Tom Ford, the designer brand known for its perfume offering, according to people familiar with the matter. A Kering representative declined to comment at the time. Estée Lauder eventually bought Tom Ford.

Models walk on the runway during Gucci’s cruise 2024 collection fashion show at the Gyeongbok Palace in Seoul, South Korea, on May 16. Photo: Reuters
Kering is currently trying to revive its biggest brand Gucci. In April, it revealed that Gucci’s sales barely grew in the first quarter as the Italian label failed to win over more shoppers to products such as Double G belts and furry Princetown slippers. Kering’s performance seemed particularly lacklustre when compared with rivals LVMH and Hermès, which both posted double-digit sales growth in the first quarter.At the time, CEO François-Henri Pinault said while the performance of Kering was mixed, it was starting to see a “gradual improvement in activity month after month”. In a bid to revamp Gucci, the company named Sabato De Sarno as its new creative director who joins from Valentino SpA.
Kering agreed to buy Creed in an all-cash deal as the luxury group expands its beauty portfolio. Photo: @creedboutique/Instagram

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Kering has previously indicated it’s trying to bulk up its beauty segment, but some brand licenses are in the hands of competitors. Coty Inc. has the license for Gucci. In February, Pinault said his group would aim to take the license back when it becomes available again, without saying when that will happen.

In the meantime, Kering will develop fragrances for Bottega Veneta, Balenciaga and Alexander McQueen – brands it owns.