Canadian Tire Corp. will acquire Helly Hansen for $771.2 million (U.S.), diversifying its offerings with a push into sportswear, according to The Vancouver Sun. The department store retailer has been putting greater emphasis on apparel to attract Millennial shoppers.
Helly Hansen operates an e-Commerce site and 57 stores in more than 40 countries, including the U.S. Its sailing, skiing, mountaineering and hiking gear also is sold at retailers such as Nordstrom and REI.
The deal will help Canadian Tire expand internationally without the risks associated with building a large new brick-and-mortar network. The retailer has been considering global options for its other brands as well, including Motomaster, Noma and Paderno.
“You don’t want to go outside your country unless it is a business model that you know you can handle,” said Stephen Wetmore, CEO of Canadian Tire in an interview with The Vancouver Sun. “This is a wonderful way to go around the world and expand our horizons without having to be capital intensive.”
Canadian Tire already is dealing with rising costs due to investments in online services and promotions to fend off competition. The retailer’s expenses were up 7.8% during the 12 weeks ending March 31, 2018.