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3mo ago

Canadian Tire Sells Helly Hansen to Kontoor Brands for $900 Million

The sale aims to refocus Canadian Tire's strategy on domestic retail, while Kontoor plans to expand Helly Hansen globally.

Helly Hansen's solution dyed Odin 9 Worlds Infinity jacket and pants are the first techincal outdoorwear not to use chemicals to keep it waterproof. CREDIT: HANDOUT
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Canadian Tire Corp. Ltd. says it has signed an almost $1.3 billion deal to sell Helly Hansen to a U.S. owner of several clothing brands. A Canadian Tire logo is displayed on a store in Ottawa on Friday, Aug. 11, 2023. THE CANADIAN PRESS/Sean Kilpatrick
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Overview

  • Canadian Tire Corporation has sold its Helly Hansen brand to Kontoor Brands for $900 million in cash and new debt.
  • The sale allows Canadian Tire to pay down debt, repurchase shares, and invest in its Canadian retail operations amidst economic uncertainty.
  • Kontoor Brands, owner of Wrangler and Lee, plans to leverage its global platform to scale Helly Hansen's presence in outdoor and workwear markets.
  • Helly Hansen, originally acquired by Canadian Tire in 2018, has seen significant revenue growth but lower profit margins compared to global peers.
  • The transaction is expected to close by the end of June 2025, with Kontoor financing the deal through a mix of cash and new debt.