Canadian Tire Corporation to acquire Hudson's Bay trademarks, striped imagery, and brands for a sum of $30 million
Fresh Take:
Canadian Tire Corporation Limited is breathing new life into an old Canadian icon, Hudson's Bay. In a deal worth $30 million, Canadian Tire will soon own the copyrights to Hudson's Bay's classic logo, coat of arms, and various trademarks.
The deal, scheduled to close this summer after court approval, allows Canadian Tire to sell goods with these beloved brand names across its 1,700 stores, which include SportChek, Party City, Mark's, Pro Hockey Life, and more.
Sources close to the deal have revealed that aside from classic houseware brands like Gluckstein and Distinctly Home, the acquisition also includes Hudson North, an apparel line.
Canadian Tire CEO, Greg Hicks, expressed both strategic and patriotic reasons for the acquisition. He calls it "an honor" to welcome these historic Hudson's Bay brands into the Canadian Tire family.
Likewise, Liz Rodbell, CEO of Hudson's Bay, believes Canadian Tire will be the perfect stewards to carry on the more than 350-year legacy of the Bay.
The acquisition is part of Hudson's Bay's efforts to restructure its business in response to economic challenges brought on by the pandemic, lower downtown traffic, and the ongoing tariff war with the U.S.
While the deal secures Hudson's Bay's intellectual property, the company's massive leases in prime shopping neighborhoods are still up for grabs. Bids have already come in for a total of 39 leases, and some bidders have shown interest in the same locations.
Interestingly, this acquisition comes hot on the heels of Canadian Tire selling its sportswear business, Helly Hansen, for nearly $1.3 billion to Kontoor Brands. With the cash from this significant sale, Canadian Tire was finally in a position to make a major acquisition like this one.
It remains to be seen what this acquisition will mean for the retail landscape in Canada and how these beloved Hudson's Bay brands will fit into the Canadian Tire ecosystem.
- In the realm of finance, this acquisition by Canadian Tire Corporation Limited signifies a significant investment of $30 million into the economy, as they purchased the intellectual property rights of Hudson's Bay.
- The acquisition of Hudson's Bay's sports line, Hudson North, adds another dimension to Canadian Tire's business portfolio, expanding their presence within the sports industry.
