Authentic Brands to convert Lee to licensing model
Kontoor Brands has signed a definitive agreement to sell the Lee business to Authentic Brands Group for up to $1 billion, including an initial transaction value of $750 million and a $250 million earnout opportunity in future years based on the performance of Lee under Authentic’s ownership.
Kontoor CEO Scott Baxter said: “The Lee transaction is a deliberate step to sharpen our brand portfolio and unlock investment capacity to fuel accelerated growth for the future of Kontoor
“By increasing our focus on Wrangler and Helly Hansen, two iconic brands with significant white space opportunities, we are better positioned to fuel a higher growth profile and create even greater value for our shareholders.”
Lee generates around $1.5 billion in annual retail-equivalent sales across 73 countries, with nearly 40% coming from outside the US and Canada.
Authentic plans to convert the Lee business into a licensing model, leveraging its brand-building expertise, network of more than 1,700 partners. It is in discussions with leading brand operators to support Lee's existing business and expand it across content, experiences and heritage-driven lifestyle categories.
"What makes Lee so compelling is its legacy," said Jamie Salter, founder of Authentic. "It's one of the most important names in denim, with more than a century of heritage, consumer awareness and cultural relevance already built in."
Authentic’s portfolio spans more than 50 brands, including Reebok, Champion, Guess, Lucky Brand, Nine West, Juicy Couture and Dockers.
