TORONTO – Tilley Endurables, the manufacturer and retailer behind the iconic Tilley hat, has been sold to a subsidiary of U.K.-based private equity firm known for its investments in distressed companies.
Financial and other details of the sale to Re:Capital, the Canadian arm of Hilco Capital, were not disclosed.
Tilley Endurables, also known for its wide variety of travel wear and accessories, was founded by entrepreneur Alex Tilley in 1980.
Tilley, whose products are stocked in more than 2,500 stores worldwide, long insisted that virtually all Tilley-branded products be made in Canada. An exception was socks, which are manufactured in the United States.
It was not immediately clear if the new owners would be moving any production out of Canada.
When Tilley, 77, announced earlier this year that he was putting the company up for sale, he said he hoped the buyers would maintain manufacturing operations in Canada, but conceded he would have no control over that.
“I cannot say ‘stay in Canada,”‘ he said in an interview with The Canadian Press at the time.
“But it would be foolish, in my opinion, to take the hat manufacturing outside of Canada.”
Get weekly money news
READ MORE: Alex Tilley says it would be ‘foolish’ to make his hats outside Canada
Paul McGowan, CEO of RE:Capital, praised Tilley in a statement Wednesday for having built “a great business and a very strong brand around phenomenal products over the last 30 years.”
“We’re delighted to pick up the mantle and draw on Re:Capital’s expertise and resources to grow the business further and take Tilley to new markets around the world,” McGowan said.
Re:Capital’s past Canadian acquisitions have included HMV Canada in 2011 and Kraus Group, a flooring manufacturer and distributor, in 2012.
In acquiring Tilley Endurables, it takes on a company whose famously durable hats enjoy a fiercely loyal following, having graced the heads of Prince Philip, famed explorer Sir Edmund Hillary and Canadian soldiers during the Gulf War, who sometimes dyed the light coloured hat with coffee to make it more camouflaged.
The company itself often bragged of the hats having emerged unscathed from the jaws of a lion and passing through the digestive system of an elephant three times.
Unlike other players in the garment industry, Tilley resisted pressure to ship production overseas, with most production in the Toronto area, along with contractors based in Nova Scotia, Quebec and British Columbia.
The Tilley hat
The idea for the Tilley hat was born from Alex Tilley’s failed search for a sailing hat that wouldn’t blow off his head and wouldn’t sink if it fell overboard.
Within months, an early concept for the Tilley hat was created. The hat debuted on the North American boat show circuit selling for $15.50 a pop, which meant Tilley barely turned a profit at first.
By the late 1980s, the Tilley hat was a phenomenon in the outdoors industry, helped by its lifetime guarantee and the face of its founder, who appeared on posters for the company’s clothing lines.
Throughout the years, the Tilley hat has graced the heads of Prince Phillip, famed explorer Sir Edmund Hillary and Canadian soldiers during the Gulf War, who sometimes dyed the light coloured hat with coffee to make it more camouflaged.
Comments