11:52 AM EST, 02/19/2025 (MT Newswires) -- (Updates shares.)

Canadian Tire (CTC-A.TO) on Wednesday said it agreed to sell the Helly Hansen clothing brand to Kontoor Brands (KTB) for $1.28 billion, to focus on its Canadian retail portfolio.

Canadian Tire will continue to sell Helly Hansen products in its banners under a multi-year supply agreement with Kontoor.

Proceeds from the sale will be used to reduce debt, repurchase shares and invest in the Canadian retail business, as well as for general corporate purposes, Canadian Tire said.

The deal is expected to close in the second quarter, subject to regulatory approvals and other customary closing conditions, as well as the signing of the supply agreement.

Canadian Tire Class A shares were last seen up $5.90 to $145.90 on the Toronto Stock Exchange.

Price: 145.92, Change: +5.92, Percent Change: +4.23