Group Buys Major Stake In Helly Hansen

A majority stake in Helly Hansen, the Norwegian manufacturer of high-performance outdoor wear, is being sold to an international investment group whose holdings include Saks Fifth Avenue and whose previous investments include Tiffany and Gucci.

Cynthia Klopp, a spokeswoman at Helly Hansen's North American headquarters in Redmond, said an agreement for Investcorp to acquire 70 percent of Helly Hansen was signed on Friday. The sale is expected to be made final on May 1. Investcorp will pay $87.5 million for the majority shares and assume $35 million in company debt. The company is valued at $160 million.

No changes in management or operations are anticipated, said Klopp. Gordon McFadden is president and chief executive officer of Helly Hansen of North America, which opened its Redmond headquarters in 1980.

Helly Hansen International, which includes the North American division and is based in Moss, Norway, is presently owned by Orkla of Norway and Aker RGI (Resource Group International) of Seattle.

Investcorp, with offices in London, New York and Bahrain, will acquire Aker RGI's 50 percent share and 20 percent of Orkla's share. Orkla, which also owns the Coca Cola distributorship in Norway, will retain a 30 percent share of the private company.

Helly Hansen, a commercial fisherman who got his start making outerwear to keep fishing crews dry, founded the company in 1877. It now makes a range of outdoor wear for hiking, climbing and mountaineering, as well as rainwear and high-end technical sailing and skiing clothes.

The North American operation shares design work and manufacturing facilities with Helly Hansen International.

Helly Hansen also has five discount outlet stores in Blaine and Centralia, Bend and Lincoln City, Ore., and Kenosha, Wis. It is planning to open its first company-owned retail store in Pacific Place in downtown Seattle when the $175 million retail-cinema complex is finished next year.

Klopp said Helly Hansen had $53 million in sales last year in North America. It will be concentrating on increasing its retail presence, in part by establishing more in-store fixtures - 250 square feet of dedicated floor space in existing retail stores. It already has such kiosks in the Alpine Hut in Redmond, Sturtevant's Sports in Bellevue and the Crow's Nest Marine Supplies in Seattle, she said.

McFadden, the North American president, said Investcorp's record with companies like Saks and the publicly traded Gucci and Tiffany will "project itself very well in building the global brand identity for Helly Hansen."

Johannes Hugh of Investcorp's management committee, said the acquisition of Helly Hansen was consistent with Investcorp's philosophy of investing in companies with recognized brand names and strong growth potential.

Investcorp was founded in 1982 and has completed more than 60 international investment transactions worth $9 billion, it said.