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Kering issues 3.8 billion euro bond loan to finance Creed acquisition
Luxury fashion conglomerate Kering has issued a bond loan of 3.8 billion euros, which it said would “notably” finance its acquisition of perfume house Creed.
The company added that the issue, which falls in line with its active liquidity management, would also enable it to enhance financial flexibility.
Kering’s takeover of Creed had been announced back in June, when the group said it was preparing to acquire 100 percent of the perfumery’s capital through funds controlled by the asset manager BlackRock and Javier Ferrán, the former president of the company.
While the financial terms of the agreement had not initially been disclosed, the Financial Times reported that the sum sat at around 3.5 billion euros.
The takeover aligned with Kering Beauté’s portfolio of brands, with the group aiming to unlock Creed’s potential across different geographies, channels and categories, as well as expanding its presence in China and Travel Retail.
Kering also said it was looking to grow the brand’s feminine fragrance portfolio, while further eyeing the body and home categories as future opportunities.
For the full year ended March 31, 2023, Creed generated revenue of more than 250 million euros, on what it said was a “very buoyant market of high perfumery”.