Kontoor Brands has signed a definitive agreement to acquire Helly Hansen, a global outdoor and workwear brand, from Canadian Tire Corporation. The acquisition aligns with Kontoor’s strategy to expand its portfolio beyond Wrangler and Lee, accelerating growth and enhancing its global presence.

Scott Baxter, CEO of Kontoor Brands, emphasized the synergy, stating, “Helly Hansen’s heritage, quality, and innovation make it a perfect fit for our expansion strategy.” The acquisition is expected to strengthen Kontoor’s position in the growing outdoor and workwear categories, leveraging its operational expertise to scale Helly Hansen globally.

Financially, the deal is positioned to drive revenue and earnings growth, with expectations of improving Helly Hansen’s profitability and cash flow through operational efficiencies. Kontoor’s EVP and CFO, Joe Alkire, highlighted the company’s strong balance sheet, ensuring a smooth acquisition process with funding from cash reserves and new debt financing.

Key benefits include diversification across geographies, categories, and consumer demographics. Kontoor aims to double Helly Hansen’s operating margin, optimize supply chain efficiencies, and enhance international market penetration. The deal is also expected to provide access to a younger, more affluent consumer base.

The transaction, approved by Kontoor’s Board of Directors, is set to close in Q2 2025, pending regulatory approvals. With immediate earnings and cash flow accretion expected in 2025, the acquisition underscores Kontoor’s commitment to long-term value creation.