Kontoor heads back outdoors with Helly Hansen purchase
20/02/2025
Kontoor said the deal provides access to an affluent, active and younger consumer base, and the complementary geographic, category and channel footprint provides significant diversification benefits.
It also commented there is an opportunity to double Helly Hansen operating margin and drive significant cash flow contribution through improved profitability and net working capital management.
Scott Baxter, CEO of Kontoor Brands, said: “The acquisition of Helly Hansen is the perfect fit for our strategy to evolve and expand our portfolio of brands, accelerate growth and deliver long-term value for our shareholders.”
Kontoor was spun out of VF Corp, owner of outdoor brands such as The North Face, in 2019.
Joe Alkire, Kontoor Brands’ chief financial officer, added, “We have deep management expertise in the attractive outdoor and workwear growth categories, and expect the addition of Helly Hansen to drive accretive returns to our existing TSR commitment, supporting strong and sustainable long-term value creation for all stakeholders.”
Kontoor reported preliminary fourth quarter 2024 revenue of approximately $699 million, an increase of 4%. It has not reported full year figures.
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