In a bid to diversify itself further and go deeper into higher-end sportswear, Canadian Tire Corp announced plans to purchase Norway-based Helly Hansen for C$985 million ($771.2 million) including debt. Toronto-based Canadian Tire, whose stores sell everything from clothes to kitchen appliances across the country, already sells Helly Hansen’s trademark parkas.
The 96-year old retailer has been steadily moving away from its roots of selling car parts and appliances to offering sportswear and apparel to attract millennial shoppers.
“With our capabilities and Helly Hansen’s trusted global brand and management team, we see tremendous opportunity for Canadian Tire and Helly Hansen, in Canada and internationally,” said Stephen Wetmore, chief executive officer of Canadian Tire.
Helly Hansen, currently owned by the Ontario Teachers’ Pension Plan, owns stores in more than 40 countries and counts the United States, United Kingdom, Norway and Canada as core markets.
Canadian Tire said the deal is part of its strategy to sell its own brands internationally.
“In addition to fitting in exceptionally well strategically, we get a well run profitable business that is immediately accretive to our earnings,” Canadian Tire Chief Financial Officer Dean McCann told analysts on a conference call.
The deal is expected to close in the third quarter.