mynth
10/2023

CREED acquired by KERING

FRANCE Consumer Products / Personal & Household / Hygiene & Beauty Brands EV 3b - 100b EUR

Context

Kering Beauté has finalized the acquisition of 100% of House of Creed from funds controlled by BlackRock Long Term Private Capital Europe and Chairman Javier Ferrán. The all-cash transaction represents the buyer's first major strategic initiative to build scale within the high-growth haute parfumerie market segment. The asset transfer instantly provides the acquirer's young beauty division with institutional scale and a mature global distribution footprint. This logistical network is designed to serve as an operating platform to accelerate the development of the buyer's future in-house fragrance portfolios. Post-acquisition management intends to scale the target's presence in mainland China and international travel retail channels while expanding into feminine scents and body care categories. Following unconditional clearance from relevant anti-trust authorities, operational control has been transferred and the business is fully consolidated.

By taking control of Creed, Kering continues its expansion strategy. Previously, the group had completed 2 acquisitions, including Valentino in 2023.

CREED, which reported an EBITDA margin of 60.0% in 2023, is valued in this transaction at an EV/EBITDA multiple of 23.3x, a level significantly higher than the average currently observed in the Retail & Consumer sector (11.2x).

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Target

House of Creed, originally founded in Great Britain with its primary manufacturing facility situated in Fontainebleau, operates as a designer and manufacturer of high-end perfumes supplying the global selective retail market. The operational footprint centers on a single dedicated laboratory, where compounding processes rely on the direct procurement of rare natural ingredients. This production model supports a premium market positioning, driving elevated retail price points per unit. This pricing approach filters the addressable customer base and yields solid margins across the product lines. Sales are distributed via a restricted retail network consisting of mono-brand boutiques and selected third-party doors worldwide. Volume stability depends on a core catalog of long-standing scents, notably the legacy Aventus fragrance line which commands a leading position in major luxury markets. This established product focus reduces the operational risks associated with short-term fashion cycles. Structural barriers stem from a heritage dating back to 1760 and exclusive sourcing channels for scarce raw flowers, preventing new market entrants from achieving comparable production scale or brand authority.

Ent. Value

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3500M EUR

Equity Value

Multiples

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EV / Revenue

14.0x

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EV / EBITDA

23.3x

EV / EBIT

Historical Financials (EUR)

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Year
Rev
EBITDA
EBIT
2023
250M
150M
2022

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REFERENCES

Valuation range: EV 3b - 100b EUR

Revenue range: 250M - 500M EUR

EBITDA range: 100M - 200M EUR

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of CREED by KERING are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Target: creed

Acquirer: kering