Overview
- Authentic Brands signed a definitive agreement to acquire Lee from Kontoor Brands for an initial $750 million plus up to $250 million in earnouts, creating a deal valued at as much as $1 billion.
- The transaction is subject to customary closing conditions and regulatory approval and is expected to close in the second half of 2026.
- Authentic says it will convert Lee into a licensing business and is negotiating with brand operators to manage production, distribution and marketing across content, experiences and lifestyle categories.
- Kontoor said it will use the sale proceeds to repurchase shares and reduce debt as part of a strategy to focus its portfolio on Wrangler and Helly Hansen.
- Lee is a 134-year-old denim brand with roughly $1.5 billion in annual retail-equivalent sales across 73 countries, and the deal fits Authentic’s asset-light model that partners with operators to scale legacy labels.