Canadian Tire to sell Helly Hansen to U.S. clothing brand

Canadian Tire says it has signed an almost $1.3-billion deal to sell Helly Hansen to a U.S. 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.

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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.