The head of Canadian Tire Corp. Ltd. called its $985-million acquisition of Helly Hansen a “major step forward” for its brand strategy, as the Norway-based maker of outdoor clothing will bolster offerings across a number of categories at both its Canadian Tire and Mark’s stores.
CEO Stephen Wetmore said Thursday that Helly Hansen’s outdoor adventure, sailing, skiing, casual and industrial wear is “very familiar territory” for the company.
Toronto-based Canadian Tire identified the Norwegian brand as an acquisition target after it established its consumer brands division, seeing it as an opportunity to strengthen some of its most “strategic and brand sensitive categories.”
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“The journey wasn’t easy and worthy pursuits rarely are. It took us 18 months to get to today. And while we would have liked to have been faster, the result was worth the wait.”
The Helly Hansen brand aligns with Canadian Tire’s and presents opportunities across a number of categories, including camping, hunting and fishing, he added.
The retailer also said it has had a long history with Helly Hansen as one of its largest customers.
Under the deal for the company controlled by the Ontario Teachers’ Pension Plan, Canadian Tire also assume $50 million in debt.
Helly Hansen CEO Paul Stoneham and the management team, based in Norway, are expected to continue to lead the business.
“CTC provides us with the ideal platform to further accelerate our growth trajectory and also strengthen our Canadian presence. This is a great opportunity for Helly Hansen and our team,” Stoneham said.
“As a Canadian, I am particularly proud to say that Canadian Tire is the new home for Helly Hansen.”
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The deal, which is expected to close in the third quarter of this year, was announced as Canadian Tire reported its first-quarter profit slipped compared with a year ago due to one-time accelerated depreciation charge.
Canadian Tire reported a profit attributable to shareholders of $78 million or $1.18 per share for the quarter, down from $87.5 million or $1.24 per share a year ago.
Revenue totalled $2.81 billion, up from $2.72 billion in the same quarter last year.
Consolidated same store sales were up 5.2 per cent in the quarter as Canadian Tire gained 5.8 per cent, Mark’s added 3.4 per cent and FGL, which includes the Sport Chek banner, gained 3.9 per cent.
Canadian Tire is buying Norway-based sportswear company Helly Hansen for nearly $1 billion.
The iconic retailer said Thursday it will pay $985 million and assume $50 million of the debt of the Norwegian firm, which makes various types of clothes for active living and other outdoor gear.
While based in Oslo, Helly Hansen is owned by the Ontario Teachers' Pension Plan.
Teachers' bought the chain in 2012 and worked with the company to expand its international presence. Helly Hansen recently reported its third consecutive year of rising profits.
Helly Hansen CEO Paul Stoneham and the management team, based in Norway, are expected to continue to lead the business.
"With our capabilities and Helly Hansen's trusted global brand and management team, we see tremendous opportunity," Canadian Tire CEO Stephen Wetmore said.
Quarterly earnings
Canadian Tire revealed the details of the purchase on the same day the company announced quarterly financial results.
The retailer posted a profit attributable to shareholders of $78 million or $1.18 per share for the quarter, down from $87.5 million or $1.24 per share a year ago.
Across all its stores, Canadian tire took in $2.81 billion in revenue during the quarter, up from $2.72 billion in the same quarter last year.
Same-store sales increased by 5.2 per cent at Canadian Tire, and at its companies — Mark's (3.4 per cent) and Sport Chek (3.9 per cent).
Canadian Tire Corp. Ltd. has signed a deal to buy Helly Hansen, a maker of sportswear and workwear based in Norway, for $985 million.
Under the deal for the company controlled by the Ontario Teachers’ Pension Plan, Canadian Tire also assumes $50 million in debt.
The retailer said outdoor and workwear are core products in its stores and it has had a long history with Helly Hansen as one of its largest customers.
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“For more than 10 years, Helly Hansen has been an exceptional fit with CTC and this acquisition will strengthen our assortment across all of our banners,” Canadian Tire chief executive Stephen Wetmore said in a statement.
“With our capabilities and Helly Hansen’s trusted global brand and management team, we see tremendous opportunity for CTC and Helly Hansen, in Canada and internationally.”
Helly Hansen CEO Paul Stoneham and the management team, based in Norway, are expected to continue to lead the business.
“CTC provides us with the ideal platform to further accelerate our growth trajectory and also strengthen our Canadian presence. This is a great opportunity for Helly Hansen and our team,” Stoneham said.
“As a Canadian, I am particularly proud to say that Canadian Tire is the new home for Helly Hansen.”
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The deal, which is expected to close in the third quarter of this year, was announced as Canadian Tire reported its first-quarter profit slipped compared with a year ago due to one-time accelerated depreciation charge.
Canadian Tire reported a profit attributable to shareholders of $78 million or $1.18 per share for the quarter, down from $87.5 million or $1.24 per share a year ago.
Revenue totalled $2.81 billion, up from $2.72 billion in the same quarter last year.
Consolidated same-store sales were up 5.2 per cent in the quarter as Canadian Tire gained 5.8 per cent, Mark’s added 3.4 per cent and FGL, which includes the Sport Chek banner, gained 3.9 per cent.
