The Essex-headquartered royal warrant holder has been snapped up in a deal believed to be around £50m.
Leading Norwegian outdoor clothing brand Helly Hansen is hoping the acquisition of Musto will help it expand into the lucrative sailing sector.
The Basildon-headquartered brand, which holds two royal warrants, is 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.
Helly Hansen will now invest in Musto’s international growth ambitions. Peter Smith, CEO of Musto, will continue to lead the business.
Smith said: "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."
Paul Stoneham, CEO of Helly Hansen, said: "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."
Our BQ Bulletin emails will land in your inbox at 7.30am, Monday to Friday, with a mix of the latest local business news, national news, and features to inspire you. Sign up here!
Click here to read our privacy statement