Helly Hansen grabs Musto in £50m Deal
Norwegian outdoor clothing company Helly Hansen has agreed to buy the Essex-headquartered British sports brand Musto from Phoenix Equity Partners and other shareholders in a deal believed to be around £50m.
Musto, which holds two royal warrants, was set up in the 1960s by Olympic sailor Keith Musto and is regarded as the brand of choice for professional yachtsmen and dinghy sailors across the globe. The brand is also an official supplier to both the British National Sailing Team and the British Equestrian Federation through to the 2020 Tokyo Olympic Games.
The Musto acquisition will help Helly Hansen further its ambitions to grow in the British market and reinforce its position as a sailing clothes specialist.
Helly Hansen Chief Executive Paul Stoneham said in a statement.
“Musto accelerates Helly Hansen’s long-term aspiration to become a global leader in sailing, matching our leadership position in professional skiing. Our focus will be to expand Musto internationally as an iconic British lifestyle brand with deep technical sailing credentials alongside Helly Hansen.”
“The two brands are highly complementary and hold in common a deep regard for the sailing community and commitment to preserving our oceans.”
Helly Hansen Chief Executive Paul Stoneham
Musto CEO Peter Smith will continue to run the business and report to Stoneham, who will become executive chairman of Musto.
“This is an incredibly exciting next phase in Musto’s evolution and we are invigorated by the prospect of working with a business as complementary to our own as Helly Hansen.”
“We look forward to leveraging Helly Hansen’s global network and R&D capabilities, as we grow our market leading position in sailing, country and outdoor apparel.”
Musto CEO Peter Smith
Last year the business reported a profit of £928,903 with turnover falling 10% to £28.6 million. Musto was put up for sale in May by its major owner Phoenix Equity.
The Wall Street Journal reported that the deal could be valued at around £50 million pounds, citing an anonymous source.
Helly Hansen, founded in Norway in 1877, is majority owned by the Ontario Teachers’ Pension Plan, one of Canada’s largest pension funds.