WHO: Creed was established in 1760, first as a tailoring house, and later a fragrance house, producing more than 200 perfumes, including the cult fragrance Aventus, Viking, Himalaya, and Green Irish Tweed. Based in Paris, with a factory in nearby Fontainebleau, Creed manufactures many of its own essences using a traditional infusion technique that enables Creed to maintain the quality and authenticity of its fragrances.
LTPC is backed by the investment firm BlackRock Inc., the world’s largest money manager that started the private equity fund in 2018 with the goal of raising $12 billion to buy all or part of companies. LTPC is part of BlackRock’s effort to build up its business in alternative assets.
Javier Ferrán is Chairman of Diageo and spent more than 20 years at Bacardi, ultimately serving as President and Chief Executive Officer. He was previously President of Bacardi EMEA and serves on the board of directors of companies including Coca-Cola European Partners.
WHY: The acquisition fits LTPC’s model of scouting for family-owned businesses and pursuing long-term themes such as demographics and millennial spending patterns. LTPC’s managers are willing to hold investments for longer than a period of three to five years that’s typical with buyout funds.
IN THEIR OWN WORDS: “In the next three to five years, we have a clear strategy to grow and expand the business, but with a real focus on preserving and enhancing the great history and heritage of Creed,” Dag Skattum, head of the European office at LTPC, said in a statement.
Olivier Creed, a direct descendant of James Henry Creed, who founded the original business during the reign of King George III of England, said to WWD that, given the perfumer’s history, “it was critical that, when the time was right, I was able to choose the best partners who would be able to maintain our heritage as a luxury family business while helping us reach more people around the world.”
He added that Ferrán and BlackRock LTPC were “ideal partners for Creed, given their collaborative approach to working with their companies and their long-term orientation. I also look forward to continuing to work with all our staff, suppliers and distributors, and I know that they will continue to share in our success.”
Creed added that Ferrán’s “leadership experience in the family-owned luxury sector, as well as the financial support of a new majority investor with long-term DNA, will ensure that [the brand] can continue to develop and produce the world’s greatest scents.”
- Creed Fragrances has been sold to BlackRock Long Term Private Capital.
- Javier Ferrán, the Spanish businessman and chairman of drinks giant Diageo Plc, will become chairman and an investor in Creed as part of the deal.
- The terms of the deal were not disclosed.
- According to WWD, industry sources estimate that Creed’s revenues are in excess of $200 million. Men’s fragrances make up about 70% of Creed’s business, and the house has been working on increasing its women’s fragrance division to account for 35 to 40%.
- Olivier Creed, the sixth-generation owner of the company, will remain master perfumer while Ferrán will become chairman of the company’s board of directors. Creed’s son, Erwin Creed, will also remain involved in the business.
- Michel Dyens & Co. acted as the exclusive financial adviser to Creed.
- LTPC struck its first deal in 2019, backing Authentic Brands Group, which recently snapped up Barneys New York and Forever 21.
Photo: via Harvey Nichols