Daily Management Review

Financial Times: French Kering acquires perfume company for €3.5B


According to reports cited by the Financial Times, French business Kering SA, which owns labels including Gucci, Balenciaga, and Yves Saint Laurent, purchased perfume maker Creed for €3.5 billion, beginning to corner the market for high-end cosmetics.

"French luxury group Kering has given €3.5 billion to acquire perfume brand Creed, as Gucci’s owner embarks on a strategically important expansion in the competitive luxury cosmetics sector," the newspaper writes.

Earlier, Kering attempted to diversify its business, but in the end, its executives decided to concentrate on "beauty as a key area of growth." The corporation created a new cosmetics section in February to create cosmetics and fragrances for its apparel brands. It was overseen by a senior executive of Estée Lauder cosmetics.

One of the largest luxury conglomerates in the world, Kering SA, manages brands including Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, and Brioni. The company brought in €20.4 billion last year.

source: ft.com