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Gucci-owner Kering paid $3.8 billion for French fragrance label Creed – FT
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(Reuters) -Gucci-owner Kering paid 3.5 billion euros ($3.83 billion) for acquiring high-end French fragrance label Creed in June, the Financial Times reported on Monday, citing people familiar with the matter.
Gucci-owner Kering paid $3.8 billion for French fragrance label Creed – FT
(Reuters) -Gucci-owner Kering paid 3.5 billion euros ($3.83 billion) for acquiring high-end French fragrance label Creed in June, the Financial Times reported on Monday, citing people familiar with the matter.
The French luxury group made the acquisition since flagging intentions earlier in the year to create an in-house cosmetics business.
The all-cash deal to acquire 100% of the fragrance house from funds controlled by BlackRock and by the company’s current chairman Javier Ferran is expected to close in the second half this year.
Part of the reason the details of the transaction were not provided earlier was that the companies did not want to broadcast Creed’s steep profit margins, according to the FT report.
Kering and Creed did not immediately respond to a Reuters request for comment.
($1 = 0.9131 euros)
(Reporting by Urvi Dugar in Bengaluru; Editing by Rashmi Aich)
Frequently Asked Questions about Gucci-owner Kering paid $3.8 billion for French fragrance label Creed – FT
1What is an acquisition?
An acquisition is the process of one company purchasing most or all of another company's shares to gain control of that company.
2What is a fragrance label?
A fragrance label refers to a brand that specializes in creating and marketing perfumes and other scented products.
3What is an all-cash deal?
An all-cash deal is a transaction where the buyer pays the full purchase price in cash, rather than using financing or credit.
4What is profit margin?
Profit margin is a financial metric that measures the percentage of revenue that exceeds the costs of goods sold, indicating the profitability of a company.
5What is a luxury group?
A luxury group is a company that owns and manages multiple high-end brands, typically in sectors like fashion, cosmetics, and accessories.
