Canadian Tire Corp. Ltd. has agreed to purchase Norway-based outdoor clothing manufacturer Helly Hansen for $985 million.
Canadian Tire Chief Executive Officer Stephen Wetmore said Thursday that the acquisition of Helly Hansen is a “major step forward” for its brand strategy and will bolster offerings across a number of categories at both its Canadian Tire and Mark's stores.
Toronto-based Canadian Tire identified the Norwegian brand as an acquisition target after it established its consumer brands division, seeing it as an opportunity to strengthen some of its most strategic and brand sensitive categories.
“It took us 18 months to get to today. And while we would have liked to have been faster, the result was worth the wait,” Mr. Wetmore said in a news release. The Helly Hansen brand aligns with Canadian Tire's and presents opportunities across a number of categories, including camping, hunting and fishing, he added.
Under the deal for the company controlled by the Ontario Teachers' Pension Plan, Canadian Tire also assume $50 million in debt. Helly Hansen CEO Paul Stoneham and the management team, based in Norway, are expected to continue to lead the business.
