Global lifestyle apparel company Kontoor Brands (Wrangler and Lee brands) recently announced it has signed a definitive agreement to acquire Helly Hansen, the global outdoor and workwear brand. Under the terms of the deal, Kontoor Brands will acquire 100% of Helly Hansen from Canadian Tire Corporation.
The acquisition of Helly Hansen builds on Kontoor’s success and it advances its strategic and financial growth agenda. Acquisition highlights include the following:
1.) Accelerates revenue, earnings growth, and cash flow profile while increasing the penetration in the large and growing outdoor and workwear categories
2.) It diversifies Kontoor’s portfolio across channels, geographies, categories, and consumers
3.) The deal utilizes Kontoor’s global and multi-brand operating platform
4.) The deal provides a fast path to reduce financial leverage
The Board of Directors of Kontoor Brands approved the deal. Subject to the receipt of required regulatory approvals and customary closing conditions, it is expected to close in the second fiscal quarter of 2025.
Kontoor expects to finance the deal with cash on hand and new debt.
Morgan Stanley is serving as Kontoor Brands’ exclusive financial advisor and Foley & Lardner as its legal advisor.
KEY QUOTES:
“We are thrilled to welcome the Helly Hansen team into Kontoor Brands and to build a future together that creates significant value for all our stakeholders. Given our global platform and proven track record of operational excellence in owning brands rooted in heritage, quality, authenticity and innovation, Kontoor Brands is uniquely positioned to partner with Helly Hansen management to scale and elevate the business globally. The acquisition of Helly Hansen is the perfect fit for our strategy to evolve and expand our portfolio of brands, accelerate growth, and deliver long-term value for our shareholders. I want to thank the Canadian Tire and Helly Hansen teams for the partnership in this process. I couldn’t be more excited for the future of Kontoor Brands and our stakeholders.”
– Scott Baxter, President, Chief Executive Officer and Chairman of Kontoor Brands
“Our strong balance sheet and operating cash flows provide us with significant capital allocation optionality, which we are employing in the acquisition of Helly Hansen. The acquisition will accelerate our growth and earnings potential while enhancing our already strong cash flow profile. We have deep management expertise in the attractive outdoor and workwear growth categories, and expect the addition of Helly Hansen to drive accretive returns to our existing TSR commitment, supporting strong and sustainable long-term value creation for all stakeholders.”
– Joe Alkire, Kontoor Brands’ Executive Vice President and Chief Financial Officer
