Kontoor Brands has joined the rapidly expanding outdoor clothing and gear market. The Norwegian company Helly Hansen, which specialises in outdoor sports performance apparel, has been acquired by the US group, which was founded in 2019 as a spin-off of VF Corp.
The acquisition will add to the group’s portfolio of lifestyle brands, which also includes Lee and Wrangler. Helly Hansen was purchased for roughly US $ 900 million. Kontoor Brands intends to leverage Helly Hansen’s impressive performance in order to increase its market share in the outdoor clothing sector.
Scott Baxter, CEO of Kontoor Brands, explained that acquiring Helly Hansen aligns perfectly with the company’s strategy to evolve and expand its brand portfolio, drive growth, and create long-term value for its shareholders.
Simulations indicate that Kontoor Group’s total sales in 2024 were US $ 2.6 billion. Following the acquisition of Helly Hansen, the holding company’s new pro forma total revenues would be around US $ 3.26 billion, given that Helly Hansen’s 2024 revenues were US $ 650 million and its EBITDA was US $ 75 million.
