Altor reaps 6x on Helly Hansen

OTPP has acquired around 75% of Helly Hansen through its private equity investment arm Teachers' Private Capital. Jo Taylor, vice-president and head of Teachers' London office, explained that it intends to continue growing revenues and brand awareness outside of core European markets.

Likewise, Helly Hansen CEO Peter Sjölander commented that the new owners will be able to provide the financial resources and global relationships to grow the company further, particularly in North America.

Altor stated that it sought to improve operational efficiency and quality control in Helly Hansen's supply chain and distribution during the ownership period. The company moved into new market segments, such as running, by capitalising on brand awareness in product lines like sailing. It has also expanded in new geographies, for example by opening 40 new stores in China.

It is believed that the investors might be planning to ultimately exit to an industrial buyer, which would be able to capitalise further on sales and source synergies.

In January 2011, Altor divested Helly Hansen subsidiary Hansen Protection to Montagu Private Equity. The deal value was not disclosed, but confirmed to be in the £75-100m range.

It is estimated that the two partial sales added to the current valuation of the remaining stake have delivered a 6x return for Altor, which would equate to an IRR of 30-40%.

Previous funding
Altor, investing from Altor Fund II, wholly acquired Helly Hansen from Investcorp in December 2006. At the time, local press reported the deal was worth around NOK 800m.

Company
Helly Hansen, founded in 1877, manufactures and retails clothes and accessories, with a particular focus on skiing, sailing, outdoor activities and training.

Based in Oslo, the company employs around 470 staff and generates a NOK 1,576m turnover. It recorded a NOK 142m EBITDA in 2011, expected to grow to more than NOK 200m in 2012.

People
Partners Hugo Maurstad and Reynir Indahl, director Johannes Lien and associate Alexander Hartman worked on the deal for Altor. Peter Sjölander is CEO of Helly Hansen.

Advisers
Vendor – ABG Sundal Collier (Corporate finance); Robert W Baird (Corporate finance); Wiersholm (Legal); PricewaterhouseCoopers (Financial due diligence).

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• Topics
• Nordics
• Consumer
• Exits
• Norway
• Partial sale