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Kontoor Brands Inc., the parent company of Wrangler and Lee, is set to acquire Helly Hansen from Canadian Tire Corp. in a $900 million deal, the companies announced Wednesday. The transaction positions Kontoor to strengthen its foothold in the booming outdoor and workwear market, tapping into a wealthier, younger, and more active consumer base worldwide.

A Move to Scale and Elevate the Business

Kontoor, headquartered in Greensboro, North Carolina, sees the acquisition as a catalyst for growth, aiming to boost operational profits and cash flow while further solidifying its global presence.

"Kontoor Brands is uniquely positioned to partner with Helly Hansen’s management to scale and elevate the business globally," said Scott Baxter, Kontoor’s president, CEO, and chair.

“This acquisition perfectly aligns with our strategy to diversify our brand portfolio, accelerate growth, and create long-term value for our shareholders.”

The transaction is slated to close in Kontoor’s second fiscal quarter of 2025, pending regulatory approvals and closing conditions.

Canadian Tire Refocuses on Core Retail Business

Canadian Tire, which acquired Helly Hansen in 2018 from the Ontario Teachers' Pension Plan for $985 million, framed the divestiture as part of a strategic pivot toward its Canadian retail operations.

"As our strategy becomes more singularly focused on great Canadian retail, it is time to pass this iconic brand into global hands," said Greg Hicks, CEO of Canadian Tire.

During its ownership, Canadian Tire expanded Helly Hansen’s reach, increasing sales and brand awareness across international markets. However, Hicks emphasized that selling the brand would unlock value for the company and its shareholders, while also providing financial flexibility to navigate economic uncertainties.

Legal Counsel and Transactional Details

Foley & Lardner LLP is representing Kontoor Brands, while Norton Rose Fulbright Canada LLP is advising Canadian Tire. Further deal team details were not immediately available.

With the acquisition, Kontoor Brands is making a bold bet on the outdoor and performance apparel industry, reinforcing its commitment to global expansion and brand diversification.