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.

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 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 says the agreement announced Wednesday will see the sportswear company wind up in the hands of Kontoor Brands, which owns Wrangler, Lee and Rock & Republic.

CTC or the Company) today announced that it has signed a definitive agreement to sell its Helly Hansen business to Kontoor Brands, Inc. (NYSE: KTB, Kontoor) for total gross proceeds of $1,276 million,

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 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.

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 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.