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

Canadian Tire bought Helly Hansen in 2018 through a $985-million deal with the Ontario Teachers’ Pension Fund, but the brand dates back to 1877, when sea captain Helly Juell Hansen enlisted his wife Margrethe to help him find a way to cope with Norwegian weather.

Canadian Tire announced Wednesday that it has signed a definitive agreement to sell its Helly Hansen business to Kontoor Brands, Inc. for total gross proceeds of $1.276 billion, subject to closing adjustments. The transaction reflects CTC’s increasing focus on its Canadian retail portfolio, said the company in a news release.