Kering, the parent company of Gucci, has successfully reached an agreement to acquire the prestigious French perfume brand Creed. This is Kering's first step in establishing a position in the fragrance business with potential future expansion into cosmetics and skincare. The value of the transaction is estimated at EUR 1 to 2 billion.

Founded in 1760 as a bespoke tailoring business for European royalty, the Creed brand has evolved into a respected fragrance company that embodies a rich family heritage. The prestigious brand is particularly renowned for its distinctive Aventus fragrance, which consistently achieves good rankings among luxury perfumes in the world's major markets, priced at €295 per 100 millilitres. The luxury fragrance segment is experiencing remarkable growth, outperforming both the premium and mainstream categories. According to consultancy Bain & Co, the total fragrance market is worth around €5 billion.

Based in France, Kering oversees the growth and management of a prestigious portfolio of fashion, leather goods and jewellery brands. Its major brands include Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin as well as Kering Eyewear and Kering Beauté. In 2022, Kering boasted more than 47,000 employees and achieved sales of €20.4 billion.

The transaction is expected to be completed in the second half of this year. The deal includes the purchase of 100% of the stake from funds managed by BlackRock and the company's current chairman Javier Ferran.