Kontoor Brands Dives into Outdoor Gear with $900 Million Helly Hansen Acquisition
On February 19, 2025, Kontoor Brands dropped a bombshell in the apparel world: a $900 million deal to acquire Helly Hansen, the Norwegian powerhouse known for its rugged outdoor and workwear apparel. This move marks the first major acquisition for Greensboro, North Carolina-based Kontoor, the parent company of iconic denim brands Wrangler and Lee. It’s a bold step that signals Kontoor’s ambition to expand beyond its jeanswear roots and stake a claim in the fast-growing outdoor market. So, what’s the story behind this deal, and what does Kontoor have planned for Helly Hansen? Let’s unpack it.
Kontoor’s Core: Wrangler and Lee
Kontoor Brands has been a denim dynamo since it spun off from VF Corporation in 2019. Its portfolio is anchored by two of the most recognizable names in apparel: Wrangler and Lee. Wrangler, with its cowboy heritage and rugged appeal, has long been a go-to for durable, stylish jeans and Western-inspired gear. Think rodeo-ready denim jackets and pants built to last—Wrangler’s 2024 revenue contributed heavily to Kontoor’s $2.6 billion haul. Lee, meanwhile, brings a slightly more urban edge, blending classic craftsmanship with modern fits that appeal to a broad audience, from casual wearers to denim diehards. Together, these brands have kept Kontoor humming, with a 4% revenue bump in Q4 2024 to $699 million, outpacing expectations.
But Kontoor isn’t content to just dominate denim. With cash reserves piling up and a global platform primed for growth, the company has been eyeing ways to diversify. Enter Helly Hansen—a brand that couldn’t be more different from Wrangler and Lee, yet fits perfectly into Kontoor’s vision.
Helly Hansen: A Norwegian Legend Joins the Fold
Founded in 1877 by Norwegian sea captain Helly Juell Hansen and his wife Maren Margrethe, Helly Hansen started with a simple mission: keep sailors dry in brutal North Sea storms. They pioneered waterproof fabrics by soaking linen in linseed oil, and over the decades, the brand evolved into a global leader in outdoor and workwear. Today, Helly Hansen outfits elite sailors, mountain guides, and ski resort pros—over 55,000 of them across 200+ resorts—while also serving everyday adventurers with gear like jackets, base layers, and premium workwear. In 2024, it raked in $650 million in sales, nearly triple what it made a decade ago.
Canadian Tire Corporation picked up Helly Hansen in 2018 for $985 million, nurturing its growth over six years. But as Canadian Tire sharpens its focus on retail, Kontoor swooped in with a $900 million offer (technically $1.276 billion CAD in gross proceeds, adjusted to $900 million net), funded by $700 million in debt and $200 million in cash. The deal, set to close in Q2 2025 pending approvals, includes a supply agreement ensuring Helly Hansen products stay on Canadian Tire shelves—a win-win for both sides.
Why Helly Hansen? A Strategic Power Play
For Kontoor, this acquisition is about more than just adding a new logo to the family—it’s a calculated leap into a booming market. The global outdoor apparel sector is growing fast, fueled by younger, active consumers willing to pay for quality gear. Helly Hansen’s $680 million revenue projection for 2025 and $80 million in adjusted EBITDA make it a financial gem, but the real value lies in its fit with Kontoor’s goals. CEO Scott Baxter called it a “perfect fit” for their strategy to evolve their portfolio, accelerate growth, and boost shareholder value.
Helly Hansen brings a premium, performance-driven edge that complements Wrangler’s toughness and Lee’s versatility. While Wrangler and Lee dominate denim and casual wear, Helly Hansen opens doors to hiking, skiing, sailing, and workwear—categories Kontoor expects to double in operating margin over time. It’s also a geographic win: Helly Hansen is big in Europe and Canada but “under-penetrated” in the U.S. and China, markets where Kontoor’s infrastructure can work its magic.
Kontoor’s Big Plans for Helly Hansen
So, what’s next? Kontoor isn’t just parking Helly Hansen on the shelf—they’re gearing up to scale it globally. Baxter and his team see untapped potential in the brand’s heritage of quality and innovation, qualities that echo Wrangler and Lee’s DNA. Their playbook includes:
Global Expansion: Kontoor’s existing supply chain, sourcing, and distribution networks—honed by years of running Wrangler and Lee—will turbocharge Helly Hansen’s reach. The U.S., where the brand has room to grow, is a prime target, alongside Asia’s burgeoning outdoor market.
Profitability Boost: Kontoor aims to double Helly Hansen’s operating margin by leveraging efficiencies in logistics and working capital management. CFO Joe Alkire highlighted how the brand can “plug into” Kontoor’s model without needing standalone investments—a seamless integration that promises big cash flow gains.
Category Diversification: Beyond jackets and workwear, Kontoor sees Helly Hansen as a platform to push into new product lines—think technical apparel, accessories, or even hybrid gear blending outdoor function with casual style. With 75% of Helly Hansen’s business in sports/active wear and 25% in premium workwear, there’s plenty of room to experiment.
Brand Synergy: While Wrangler and Lee won’t merge with Helly Hansen stylistically, Kontoor plans to cross-pollinate their strengths. Imagine Wrangler’s rugged ethos inspiring a Helly Hansen workwear collab, or Lee’s modern fits influencing a sleek outdoor line. The focus is on elevating all three brands while keeping their identities distinct.
A New Era for Kontoor
This acquisition catapults Kontoor’s pro forma sales past $3.2 billion, putting it in direct competition with heavyweights like its former parent VF Corp (home to The North Face). Investors are buzzing—KTB stock dipped slightly pre-market after the announcement but has analysts like Wells Fargo raising price targets to $100. Moody’s even confirmed the deal won’t dent Kontoor’s credit ratings, a nod to its financial health.
For fans of Wrangler and Lee, don’t worry—Kontoor isn’t abandoning denim. Project Jeanius, their initiative to refresh those brands, is still in full swing. But adding Helly Hansen signals a broader vision: a multi-category powerhouse that dresses you for the ranch, the city, and the wilderness. As Baxter put it, Helly Hansen “ticks all the boxes” for growth. If Kontoor plays this right, they’re not just buying a brand—they’re building an empire.
