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Kontoor Brands agreed to sell its Lee denim brand to Authentic Brands Group in a transaction valued at up to $1 billion, the companies said on Thursday.
Under the terms of the agreement, Reuters reports that Kontoor will receive $750 million upfront, with the remaining $250 million contingent on Lee's performance once it moves to Authentic's stewardship. Kontoor's board gave unanimous approval to the sale, which regulators must still clear before it can be finalized, with both companies targeting completion sometime before year-end 2026.
Authentic plans to convert Lee into a licensing model once the deal closes, the company said. Talks are already underway with potential brand operators who would take on Lee's day-to-day business and pursue growth in areas including content, experiences, and heritage-driven lifestyle categories, Authentic said.
"What makes Lee so compelling is its legacy," said Jamie Salter, founder and executive chairman of Authentic, in a statement. "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."
