Canadian Tire buys sportswear company Helly Hansen for nearly $1B

Canadian Tire is buying Norway-based sportswear company Helly Hansen for nearly $1 billion.

The iconic retailer said Thursday it will pay$985 million and assume $50 million of the debt of the Norwegian firm, which makes various types of clothes for active living and otheroutdoor gear.

While based in Oslo, Helly Hansen is owned by the Ontario Teachers' Pension Plan.

Teachers' bought the chain in 2012 and worked with the company to expand its international presence. Helly Hansen recently reported its third consecutive year of rising profits.

Helly Hansen CEO Paul Stoneham and the management team, based in Norway, are expected to continue to lead the business.

"With our capabilities and Helly Hansen's trusted global brand and management team, we see tremendous opportunity," Canadian Tire CEO Stephen Wetmore said.

Quarterly earnings

Canadian Tire revealed the details of the purchase on the same day the company announced quarterly financial results.

The retailer posted a profit attributable to shareholders of $78 million or $1.18 per share for the quarter, down from $87.5 million or $1.24 per share a year ago.

Across all its stores, Canadian tire took in$2.81 billion in revenue during the quarter, up from $2.72 billion in the same quarter last year.

Same-store sales increased by 5.2 per cent at Canadian Tire, and at its companies Mark's (3.4 per cent) and Sport Chek(3.9 per cent).