Kontoor to acquire apparel brand Helly Hansen for US$900m
Kontoor Brands, the parent company of Wrangler and Lee, is set to expand its portfolio by acquiring global outdoor and workwear brand Helly Hansen.
Transaction snapshot
Deal value: US$900m ($1.4bn)
Deal multiples: 1.3x revenue, 11.3x EBITDA
Deal type: Full acquisition
Investors: Kontoor Brands, acquiring from Canadian Tire Corp
The acquisition involves Kontoor Brands taking full ownership of Helly Hansen for approximately US$1.27bn ($2bn) in total gross proceeds, with a purchase price of around US$900m ($1.4bn).
Helly Hansen, based in Norway, designs and manufactures outerwear, base layers, sportswear, and footwear tailored for outdoor professionals and enthusiasts. The brand’s ski uniforms are used by over 50,000 professionals worldwide, including Olympians, national teams, and more than 200 ski resorts and mountain guiding operations.
Helly Hansen’s products are sold globally, including through Canadian retailers such as Canadian Tire, SportChek, and Mark’s.
The acquisition is expected to accelerate Kontoor’s growth by diversifying its portfolio and leveraging its global operations, sourcing model, and supply chain.
Kontoor’s president, CEO, and chairman, Scott Baxter, expressed enthusiasm about the acquisition, stating that Helly Hansen complements the company’s strategy to expand its brand portfolio, drive growth, and deliver long-term shareholder value.
Key highlights of the acquisition:
Revenue and earnings growth: Expected boost in revenue, earnings, and cash flow, with stronger market presence in the outdoor and workwear sectors.
Profitability increase: Potential to double Helly Hansen’s operating margin and improve cash flow through better profitability and working capital management.
Market expansion: Broadening geographic, category, and channel reach for greater diversification.
Global growth opportunities: Leverages Kontoor’s established US presence while unlocking growth in Europe, the Americas beyond the US, and the Asia-Pacific region, targeting a younger, more affluent, and active demographic.
Operational benefits: Helly Hansen will gain from Kontoor’s extensive multi-brand global operating platform, aligning the brand within a global ownership structure.
The acquisition will be financed through existing cash reserves and new debt financing. Kontoor expects Helly Hansen to generate over US$680m ($1.06bn) in revenue and US$80m ($124.9m) in adjusted EBITDA for the full year of 2025.
