Ontario Teachers’ to sell Helly Hansen to Canadian Tire for $1.035B

Ontario Teachers’ Pension Plan (Ontario Teachers’) has agreed to sell its majority stake in Helly Hansen Group AS to Canadian Tire Corporation, Limited (TSX: CTC, CTC.A) for $1.035 billion. Canadian Tire will acquire Helly Hansen which owns and operates the Helly Hansen brands and related businesses for $985 million and is assuming approximately $50 million of operating debt, net of cash.

Founded in 1877, Oslo, Norway based Helly Hansen is known for its professional grade gear and for being a leader in designing innovative and high-quality technical performance products developed for the harshest outdoor conditions. With wholesale and retail distribution capabilities across more than 40 countries, Helly Hansen is a trusted and celebrated brand worldwide.

Ontario Teachers’ acquired 75% of Helly Hansen in August 2012 from Nordic private equity firm Altor for reportedly US $326 million or approximately $333 million. In July 2015,
Ontario Teachers’ completed the acquisition of the remaining 25% stake from Altor.

The acquisition is expected to close in Q3 2018 and is subject to usual closing conditions.

Paul Stoneham, CEO of Helly Hansen, and the management team, based in Oslo, will continue to lead the business, reporting to CTC Executive Vice President Mahes Wickramasinghe.

photo credit: Helly Hansen

News Release

Ontario Teachers’ announces agreement to sell Norwegian designer Helly Hansen

May 10, 2018

TORONTO – Ontario Teachers’ Pension Plan (Ontario Teachers’) today announced the sale of its majority stake in Helly Hansen Group AS (Helly Hansen), the iconic Norwegian designer and marketer of high-performance outdoor and workwear apparel, to Canadian Tire Corporation, Limited (TSX:CTC, TSX:CTC.A) (CTC).

“Over the past six years Ontario Teachers’ has worked proactively with the Helly Hansen team to build a strong financial and strategic footing for the company,” said Jo Taylor, Ontario Teachers’ Senior Managing Director International. “The excellent financial performance of the business, driven by a market leading position in its core categories, is a testament to the success of that partnership.”

Ontario Teachers’ acquired Helly Hansen in 2012 and worked with the Oslo-based company to expand its brand internationally. The company this week reported its third consecutive year of record profit growth.

About Ontario Teachers’

The Ontario Teachers’ Pension Plan (Ontario Teachers’) is Canada’s largest single-profession pension plan, with $189.5 billion in net assets at December 31, 2017. It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an average annualized rate of return of 9.9% since the plan’s founding in 1990. Ontario Teachers’ is an independent organization headquartered in Toronto. Its Europe, Middle East & Africa region office is in London and its Asia-Pacific region office is located in Hong Kong. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario’s 323,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.

Contact:

Pav Jordan
Senior Manager, Investment Communications
(416) 228-6862
Pav_jordan@otpp.com

For Europe
Matthew Thomlinson
E: Matthew.Thomlinson@cnc-communications.com
T: +44 7908 249 266


Ted Liu
Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal, TechnologyMetals.ca, GoldSilverMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted is President of CPE Media Inc., an independent, trusted and unbiased data provider tracking Canadian VC/PE, private capital industry.
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