Canadian Tire to sell Helly Hansen business to Kontoor Brands for $901 million (updated)

Canadian Tire

19/02/2025 12:01

(Adds details from paragraph 2)
       Feb 19 (Reuters) - Canadian Tire  CTCa.TO  said on
Wednesday it would sell its premium workwear business Helly
Hansen to Kontoor Brands  KTB.N  for C$1.28 billion ($901.2
million), as part of efforts to focus on its core business.
    The transaction is expected to close in the second quarter
of 2025, the company said. Canadian Tire expects to continue the
sale of Helly Hansen products under a multi-year supply
agreement.
    The company expects to use the deal proceeds for share
repurchases, to cut debt and to drive growth in its core
Canadian retail business.
    Separately, Kontoor Brands provided preliminary results
where quarterly profit came in lower than Wall Street estimates.
    Its shares were down about 5% in premarket trading.
    
 
 ($1 = 1.4203 Canadian dollars)

 (Reporting by Anuja Bharat Mistry in Bengaluru; Editing by
Savio D'Souza and Sriraj Kalluvila)
 ((AnujaBharat.Mistry@thomsonreuters.com;))