Kontoor Brands Inc. has announced its first major corporate acquisition, revealing plans to spend $900 million to acquire Helly Hansen, the Norwegian outdoor and workwear brand. The deal marks a significant step for Kontoor, which spun off from VF Corp. in May 2019 and has since focused on expanding its market presence.
Based in Greensboro, North Carolina, Kontoor operates a major distribution center in Mocksville, with 360 employees. The acquisition is expected to close in the second quarter of 2025. Kontoor views the deal as a strategic move to enhance its position in the growing outdoor and workwear markets and expand its global footprint.
Helly Hansen, founded in 1877 by Norwegian sea captain Helly Hansen, has built a strong reputation for producing high-quality outdoor and skiing apparel. The company initially gained recognition for its waterproof jackets and gear made from linen soaked in linseed oil, designed to withstand the harsh elements of the Norwegian coast.
While Kontoor is known for its camping and hiking product lines, Helly Hansen focuses on mid-to-high-end apparel for outdoor enthusiasts, including ski wear and workwear. The brand has gained significant recognition, particularly in Europe, Canada, and the U.S. ski resort market.
Scott Baxter, Kontoor’s chairman, president, and CEO, expressed his satisfaction with the acquisition, highlighting that Kontoor had been eyeing Helly Hansen for some time. He emphasized the brand’s prominence in Europe and Canada, noting its strong presence in snowshoeing, skiing, sailing, and workwear.
“Helly Hansen is a very recognizable brand in the U.S., particularly with outdoor enthusiasts and ski resorts, where they outfit the staff,” Baxter said. “Their workwear offerings, like jackets, protective pants, and footwear, are innovative and high-quality.”
Helly Hansen is expected to generate over $680 million in revenue for fiscal 2025. For comparison, Kontoor reported $699 million in revenue for the fourth quarter. Baxter believes the acquisition will allow Kontoor to strengthen its position in the outdoor and workwear markets, diversifying its portfolio and boosting international operations.
“The acquisition is a perfect fit for our strategy to expand our portfolio and accelerate growth,” Baxter said. “It gives us a stronger presence in the outdoor market, particularly in Europe and Canada, where we weren’t as prominent.”
Kontoor also sees significant operational and distribution potential in integrating Helly Hansen into its existing supply chain, particularly in the U.S. The brand’s U.S. operations are based in Sumner, Washington, where it handles sales, distribution, and customer service. By leveraging Kontoor’s existing infrastructure, Helly Hansen will gain better access to the U.S. market, which is the largest outdoor market globally.
“We can plug them into our SAP system and supply chain to give them better access to the U.S. market,” Baxter explained. “This growth will require additional personnel in the U.S., and we plan to integrate the business into our headquarters and back-office operations.”
Kontoor’s Chief Financial Officer, Joe Alkire, added that the acquisition will be financed using excess cash and new debt. The move is expected to strengthen Kontoor’s position in the outdoor and workwear sectors and enhance its earnings potential.
“Helly Hansen gives us exposure to a younger, affluent, and active consumer base in Europe, the Americas (excluding the U.S.), and Asia Pacific,” Alkire said. “It will accelerate our growth and improve our already strong cash flow profile.”
Kontoor also released a limited preliminary fourth-quarter report, which showed diluted earnings of $1.14 per share, down from $1.21 a year ago. Adjusted earnings were $1.38 per share, excluding restructuring expenses of 24 cents. Analysts had projected earnings of $1.31 per share.
The company reported $10 million in business optimization expenses and $7 million in costs related to streamlining and transferring select production within its internal manufacturing network.
With the acquisition of Helly Hansen, Kontoor aims to solidify its position as a leader in the outdoor and workwear industries while broadening its reach to new international markets.
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