The acquisition from Canadian Tire Corp will see Kontoor Brands taking over 100% ownership of Helly Hansen for total gross proceeds of approximately $1.27bn or a purchase price of around $900m.
Based in Norway, Helly Hansen designs and produces outerwear, base layers, sportswear, and footwear for outdoor professionals and enthusiasts around the world.
Its ski uniforms are trusted by over 50,000 professionals and are worn by Olympians, National Teams, and at more than 200 ski resorts and mountain guiding operations globally.
The brand's high-performance apparel and gear are sold worldwide, including in Canadian Tire, SportChek, and Mark's stores across Canada.
The transaction is poised to accelerate Kontoor's growth trajectory, diversify its portfolio across various dimensions, leveraging its global operating platform, strategic sourcing model and supply chain.
Kontoor Brands President, chief executive officer and chairman Scott Baxter said: “We are thrilled to welcome the Helly Hansen team into Kontoor Brands and to build a future together that creates significant value for all our stakeholders. Given our global platform and proven track record of operational excellence in owning brands rooted in heritage, quality, authenticity and innovation, Kontoor Brands is uniquely positioned to partner with Helly Hansen management to scale and elevate the business globally.
“The acquisition of Helly Hansen is the perfect fit for our strategy to evolve and expand our portfolio of brands, accelerate growth, and deliver long-term value for our shareholders. I want to thank the Canadian Tire and Helly Hansen teams for the partnership in this process. I couldn’t be more excited for the future of Kontoor Brands and our stakeholders.”
Key highlights of the acquisition include
Enhanced growth in revenue, earnings, and cash flow, with increased market penetration in the burgeoning outdoor and workwear sectors.
It will also double Helly Hansen's operating margin potential and significant cash flow contributions through improved profitability and working capital management.
The deal will also see expansion across key segments including the combination of geographic, category, and channel reach offers substantial diversification advantages.
It will also capitalise on Kontoor’s established US presence while unlocking growth opportunities in Europe, the Americas outside the US, and the Asia Pacific region while introducing access to a more affluent, active, and younger consumer demographic.
Meanwhile, Helly Hansen will benefit from Kontoor’s extensive, multi-brand global operating platform. The brand becomes a more strategic fit within a global brand ownership structure.
Kontoor plans to finance the deal through excess cash on hand and new debt financing. The company anticipates Helly Hansen to generate more than $680m in revenue and $80m in adjusted EBITDA for the full year of 2025.
