Canadian Tire signs deal to sell Helly Hansen for $1.3 billion
Canadian Tire Corp. Ltd. says it has signed an almost $1.3-billion deal to sell Helly Hansen to a United States owner of several clothing brands.
Canadian Tire says the agreement will see the sportswear company wind up in the hands of Kontoor Brands, which owns Wrangler, Lee and Rock & Republic.
Canadian Tire, which also owns SportChek and Mark’s, framed the sale as a way for it to increase its focus on its Canadian retail portfolio and unlock value for the company and shareholders alike.
The Toronto-based retailer says the deal with Kontoor is expected to close in the second quarter of this year, but is subject to regulatory approvals and customary closing conditions, including a supply agreement.
The multi-year supply deal will allow Canadian Tire and its brands to continue to sell Helly Hansen products.
Canadian Tire bought Helly Hansen in 2018 through a $985-million deal with the Ontario Teachers’ Pension Fund, but the brand dates back to 1877, when sea captain Helly Juell Hansen enlisted his wife Margrethe to help him find a way to cope with Norwegian weather.
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