Altor Equity Partners, a private equity investment firm set up only three years ago by a Swedish entrepreneur, Harald Mix, has agreed to take over 100 percent of the shares of Helly Hansen. According to a Norwegian financial newspaper, Altor is paying about 800 Norwegian kroner (€95.8m-$121.7m) for the company, although the report could not be confirmed.

In a presentations to more than 20 different candidates who made a tentative bid –half of them strategic investors – Helly Hansen has indicated that it expects to generate an operating profit before amortization and depreciation (EBITDA) of 85 million NOK (€10.2m-$12.9m) this year, up from 62 million NOK in 2005. Revenues are set to grow in high single digits this year from last year level of 1,460 million NOK (€175m-$222m), driven in particular by Helly Hansen’s new footwear line, which will see deliveries of half a million pairs in 2006.

The momentum is strong. Sales should grow next year in the double digits, with a major push in skiwear and base layers, following a repositioning of the apparel line into a higher, more technical segment of the outdoor market. EBITDA is expected to increase by and additional 40-50 million NOK (€4.8-6.0m-$6.0-7.6m) based on the business plan being implemented by Jan Valdmaa, the chief executive who was appointed at the head of Helly Hansen in January 2001. It could not be determined whether he will remain with the company or perhaps seek a new challenge.

The sports & leisure segment represents 70-75 percent of Helly-Hansen’s revenues, which don’t include about 400 million NOK (€48m-$61m) in licensed sales. Two other divisions – workwear and survival suits for the oil and gas industry – share the balance. Helly Hansen figures that its brand is worth about $500 million a year in retail sales worldwide, with about 90 percent of the turnover in the sports & leisure sector.

The new owner is almost certain to be looking for opportunities to acquire complementary brands or companies, particularly from the Nordic region, that can benefit from Helly Hansen’s extensive international presence. Altor has done this already in a couple of other sectors – boats and navigation systems – with companies such as Simrad, Lowrance and Nimbus.

Altor has bought majority shareholdings in 30 different mid-sized companies in the Nordic region over the past three years, and exited one, Aco Hud. It comprises two equity funds worth a total of equity of €1.8 billion. It has 25 employees at offices in Stockholm and Oslo.

Founded back in 1877, Helly Hansen is the biggest Norwegian sports company. Investcorp of Bahrein and a Norwegian investment company, Orkla, bought it in 1997 from two shipping and fishing magnates who owned Helly Hansen and other companies for a while, believing perhaps too strongly in the potential of the sporting goods sector. The shareholdings were reshuffled a few years ago in the course of a refinancing deal where the banks acquired some of the shares. As part of that transaction, Investcorp raised its own stake from 50 to 67 percent.

In its latest transaction, which is conditional on approval by the relevant competition authorities, Investcorp was advised by KPMG Corporate Finance and Silver Steep Partners. Altor was advised by Enskilda and Cardo Partners.