Kontoor Brands, the apparel company behind Wrangler and Lee, is to acquire Canadian outdoor workwear brand Helly Hansen from Canadian Tire Corporation.

Founded in Norway in 1877, Helly Hansen is known for its outdoor apparel and clothing innovations, including the first fleece fabrics in the 1960s and the H2Flow temperature regulation system.

In 2019, VF Corp spun off the Wrangler and Lee brands to a new publicly traded company set up as Kontoor Brands. It divested the denim business citing a lack of fit with its outdoor and street lifestyle focus. 

Scott Baxter, President, CEO, and chairman of Kontoor Brands, emphasised the strategic alignment of the purchase with plans to scale the business globally.

“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,” said Baxter.

 “We are thrilled to welcome the Helly Hansen team into Kontoor Brands and to build a future together.”

The acquisition follows a strong performance by Kontoor Brands in the fourth quarter of last year, with revenue reaching approximately $699 million, up 4 per cent year-over-year. 

The company also reported an adjusted gross margin of 44.7 per cent and full-year cash flow from operations of approximately $368 million.

“I am pleased with our strong finish to the year, driven by better-than-expected revenue, earnings, and cash generation,” added Baxter.

“Supported by the benefits of Project Jeanius and the acquisition of Helly Hansen, we are well-positioned to deliver another year of strong returns and value creation.”

Kontoor Brands will finance the transaction through cash on hand and new debt.

The transaction is expected to be completed in the second quarter of this year, pending regulatory approvals.