Canadian Tire signs deal for Helly Hansen

Canadian Tire Corp. views its $985-million acquisition of Norwegian outdoor clothing and gear maker Helly Hansen as a “major step forward” to diversify its offerings at home and launch new opportunities in international markets.

“This is a brand that we truly believe has a lot of runway ahead of it internationally,” CEO Stephen Wetmore said in an interview.

The Toronto-based retailer has long been one of Helly Hansen’s biggest customers and the deal announced Thursday will bolster a number of its product categories, including camping, hunting and fishing, at both Canadian Tire department stores and its Mark’s clothing chain, he said.

Helly Hansen, which was founded in Moss, Norway, in 1877 and is now sold in more than 40 countries around the world, has “successfully and profitably entered many markets” globally with its outdoor adventure, sailing, skiing and casual industrial brand, Wetmore said in an earlier conference call with financial analysts.

“This too will serve as a foundation for us to build upon in future years with existing or new owned brands,” Wetmore said during the call.

Canadian Tire identified the Norwegian brand as an acquisition target shortly after it established its consumer brands division, seeing it as an opportunity to strengthen some of its most “strategic and brand-sensitive categories,” but the deal took 18 months to come together, Wetmore said.

“The journey wasn’t easy and worthy pursuits rarely are,” he said.

“And while we would have liked to have been faster, the result was worth the wait.”

Wetmore explained in an interview that it took time for the company to convince the Ontario Teachers’ Pension Plan, which acquired Helly Hansen in 2012, to become a willing seller.

The outdoor brand will continue to be sold in a broad range of stores in Canada, not just Canadian Tire stores, the company said. Canadian Tire stores will also carry a broader selection of Helly Hansen products, including the brand’s footwear line.