Canadian Tire Sells Helly Hansen in $1.3B Deal to Focus on Home Turf
Hey everyone, have you heard the big news? Canadian Tire has just sold its internationally recognized sportswear brand, Helly Hansen, to a U.S.-based company called Kontoor Brands for a staggering $1.3 billion. That’s right—this iconic Norwegian-born, Canadian-owned outdoor apparel brand is now officially in American hands.
So what’s behind this major move? According to Canadian Tire, this sale is all about sharpening their focus on their core business here at home. The retailer, which has been a staple in Canadian households since 1922, made it clear that it's doubling down on what it does best—delivering top-notch retail experiences across Canada. CEO Greg Hicks stated that the decision aligns with their strategy of putting Canadian retail first, and the proceeds from the sale will go toward reducing debt, buying back shares, and investing further in improving customer experience and expanding local operations.
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Now, even though Helly Hansen is changing ownership, Canadian Tire shoppers won’t need to worry. Hicks reassured everyone that the brand's world-class products aren’t going anywhere. They’ll still be available in Canadian Tire stores as part of a customer-brand relationship rather than a parent-brand one. So if you're a fan of Helly Hansen’s high-performance gear, you can keep adding it to your shopping cart just like before.
On the other side of the deal, Kontoor Brands—best known for Wrangler, Lee, and Rock & Republic—is calling this a game-changing acquisition. Their CEO, Scott Baxter, emphasized that adding Helly Hansen to their portfolio will boost growth, broaden their market reach, and expand their presence in both the outdoor and workwear categories. In fact, they’re expecting this acquisition to immediately contribute to their revenue and earnings in fiscal 2025.
So, what does this all mean? Well, it's a pretty bold move. Canadian Tire is freeing up a lot of capital, presumably to stay competitive in a rapidly changing retail landscape and maybe even to eye other big deals, like their previously reported interest in Hudson’s Bay’s brands. And Kontoor is getting a premium name that’ll help them go toe-to-toe with other global outdoor giants.
All in all, this sale signals a major strategic pivot for Canadian Tire and a big leap forward for Kontoor. One thing’s for sure—this deal will have ripple effects across both the Canadian and global retail markets. Let’s see where both companies go from here.
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