Leading automotive retailer Canadian Tire Corporation has announced that it has agreed to acquire Norwegian outdoor and sports clothing retailer Helly Hansen for $985mn including debt.
The move is a significant step for Canadian Tire in the way of diversifying its offerings, whilst the firm will also be able to access a number of new markets by leveraging Helly Hansen’s existing global footprint across 40 countries.
“For more than ten years, Helly Hansen has been an exceptional fit with Canadian Tire and this acquisition will strengthen our assortment across all of our banners,” said Stephen Wetmore, President and CEO, Canadian Tire Corporation.
“With our capabilities and Helly Hansen's trusted global brand and management team, we see tremendous opportunity for Canadian Tire and Helly Hansen, in Canada and internationally.”
Canadian Tire has gradually been moving away from its origins of selling car parts, instead moving more readily into the sportswear and apparel market, with the Helly Hansen acquisition providing the company with the ideal platform to sell its own clothing brands more widely.
“As a Canadian, I am particularly proud to say that Canadian Tire is the new home for Helly Hansen,” said Paul Stoneman, CEO of Helly Hansen.
The deal is expected to close in Q3 2018.