Canadian Tire has struck a deal worth $898.8 million to sell outdoor-and-workwear business Helly Hansen to Kontoor Brands as the Canadian retailer tightens its focus on its home market.

Canadian Tire Corp. Ltd. says it has signed an almost $1.3-billion deal to sell Helly Hansen to a U.S. owner of several clothing brands.

Canadian Tire Corp. Ltd. has reached an agreement to sell Helly Hansen to US-based Kontoor Brands in a deal valued at nearly $1.3bn, according to BNN Bloomberg. The company stated that this decision allows it to concentrate on its Canadian retail operations while delivering value to shareholders.

Kontoor Brands, owner of denim giants Wrangler and Lee, is expanding its portfolio with the addition of global outdoor and workwear brand, Helly Hansen.

The addition of Helly Hansen, which was acquired from Canadian Tire Corp., is expected to accelerate sales, earnings and cash flow for Kontoor, the owner of the Wrangler and Lee brands, while furthering its reach in the outdoor and workwear market.

Canadian Tire is selling activewear brand Helly Hansen to Kontoor Brands — the U.S. owner of Wrangler jeans — for $1.3 billion.

Kontoor CEO Scott Baxter says Helly Hansen focuses on the Wrangler and Lee owner's top expansion categories in outdoor and workwear.

Retailer plans to use the proceeds to pay down debt, to buy back shares and to invest in its stores amid ‘market uncertainty’

Kontoor Brands president, CEO and chairman Scott Baxter stated: "We are thrilled to welcome the Helly Hansen team into Kontoor Brands and to build a future together that creates s

Kontoor Brands acquires Helly Hansen for $900M to expand into outdoor/workwear. Improved profitability, but valuation concerns persist. Read more on KTB here.