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

Canadian Tire says it has signed an nearly $1.3-billion deal to promote Helly Hansen to a U.S. proprietor of a number of clothes manufacturers.

Canadian Tire says the settlement will see the sportswear firm wind up within the palms of Kontoor Manufacturers, which owns Wrangler, Lee and Rock & Republic.

Canadian Tire, which additionally owns SportChek and Mark’s, framed the sale as a approach for it to extend its concentrate on its Canadian retail portfolio and unlock worth for the corporate and shareholders alike.

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The Toronto-based retailer says the cope with Kontoor is anticipated to shut within the second quarter of this yr, however is topic to regulatory approvals and customary closing circumstances, together with a provide settlement.

The multi-year provide deal will permit Canadian Tire and its manufacturers to proceed to promote Helly Hansen merchandise.

Canadian Tire purchased Helly Hansen in 2018 by way of a $985-million cope with the Ontario Academics’ Pension Fund, however the model dates again to 1877, when sea captain Helly Juell Hansen enlisted his spouse Margrethe to assist him discover a approach to deal with Norwegian climate.