Kontoor Brands to acquire Helly Hansen for approximately $900M

Kontoor Brands (KTB) has signed a definitive agreement to acquire Helly Hansen, the global outdoor and workwear brand. Under the terms of the agreement, Kontoor Brands will acquire 100% of Helly Hansen from Canadian Tire (CDNAF) Corporation. The acquisition of Helly Hansen builds on Kontoor’s success and advances its strategic and financial growth agenda. Kontoor expects Helly Hansen to generate more than $680 million of revenue and $80 million of adjusted EBITDA for full year 2025; Purchase price is approximately $900 million and reflects an approximate 11x transaction multiple based on Kontoor’s full year 2025 adjusted EBITDA outlook for Helly Hansen, excluding synergies. “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,” said Scott Baxter, President, Chief Executive Officer and Chairman of Kontoor Brands. “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.” Immediately Revenue, Earnings and Cash Flow Accretive with Opportunity to Drive Significant Shareholder Value Creation and Enhance Long-Term Capital Allocation Optionality: Expect to deliver strong financial returns and meaningful earnings and cash flow accretion in 2025, excluding synergies; Expect to achieve meaningful synergies over time, supported by operating efficiencies and improved net working capital management; Accelerating operating profit and cash flow supports increased capital allocation optionality once financial leverage has been reduced; Accretive to Kontoor Brands’ existing TSR commitment through enhanced fundamental growth model. The Board of Directors of Kontoor Brands has approved the transaction. The transaction is expected to close in the second fiscal quarter of 2025, subject to the receipt of required regulatory approvals and customary closing conditions. Kontoor expects to finance the transaction with a combination of cash on hand and new debt.