Kontoor Brands Acquires Helly Hansen for $900 Million USD
Kontoor Brands, the parent company of iconic denim labels Lee and Wrangler, has officially closed its acquisition of Norwegian outdoor brand Helly Hansen for a whopping $900 million USD. The deal, which was announced earlier this year, was finalized on Monday morning.
“An Exciting Step Forward”: Kontoor Brands CEO on Helly Hansen Acquisition
According to Kontoor Brands CEO Scott Baxter, the acquisition of Helly Hansen marks an exciting step forward for the company as it expands its portfolio of consumer brands. Baxter believes that the addition of Helly Hansen will not only increase growth, but also diversify the company’s offerings and expand its presence in the outdoor and workwear markets.
Major Players in Apparel Sector Look to Capitalize on Outdoor Gear Market
The move to acquire Helly Hansen comes as many major players in the apparel sector are looking to tap into the growing outdoor and performance gear market. This is especially relevant for Kontoor Brands, whose main focus has been on its small group of heritage lifestyle labels. In addition to diversifying its offerings, the company’s global presence is also expected to benefit from the acquisition, as Helly Hansen is popular in international regions like Japan, where Lee and Wrangler also have a strong presence.
Helly Hansen Expected to Boost Kontoor Brands’ Revenue and Earnings
Founded in 1877, Helly Hansen was previously owned by Canadian Tire Corporation before being acquired by Kontoor Brands. The company expects the addition of Helly Hansen to have an immediate positive impact on its revenue, adjusted earnings per share, and cash flow in fiscal 2025. According to a report from Ecotextile News, Helly Hansen is projected to generate over $680 million USD in revenue and $80 million USD in adjusted EBITDA in 2025.
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