Oslo sportswear clothing company Helly Hansen AS, a subsidiary of Helly Hansen Holding AS (HH) is to be purchased by general merchandising company Canadian Tire Corporation, Limited.
Toronto retailer Canadian Tire (one of Helly Hansen’s largest customers) reported yesterday, May 10th, of intent to purchase HH; saying that the sale will reinforce its product categories within Canadian Tire stores & Mark’s clothing stores.
Canadian Tire CEO Stephen Wetmore told Reuters; “With our capabilities and Helly Hansen’s international brand & management, we see huge opportunity for Canadian Tire and Helly Hansen, both internationally and within Canada.”
Canadian Tire will pay CAD $985M and assume CAD $50M HH debt in lieu of cash to complete purchase. (1.00 Canadian Dollar equals 6.26 Norwegian Krone.) The acquisition is expected to close in Q3 2018: subject to regulatory review.
The Ontario Teachers’ Pension Plan purchased Helly Hansen in 2012 and reports a 3rd consecutive year profit increase. Helly Hansen CEO Paul Stoneham is expected to continue leading the company from its Oslo headquarters.
Helly Hansen was founded 1877 by Helly & Hansen. The company was organized in 1970 as Helly Hansen Holding AS, with locations worldwide in over 40 countries.
Across all stores, Canadian Tire generated CAD $2.8B in revenue during its last quarter, up from CAD $2.72B from the same quarter of 2017.
At post: Canadian Tire Corp. Ltd. stock spot price (CAD) : Closed $268.50, up 5.29% from Previous Close of $255.00
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