Lee is the latest brand to join the Authentic Brands Group portfolio.
On Thursday, the global brand and entertainment platform said it has signed a definitive agreement with Kontoor Brands Inc., to acquire Lee in a deal valued at up to $1 billion — an initial transaction value of $750 million and a $250 million earnout opportunity in future years based on the performance of the brand under Authentic’s ownership.
Lee currently generates about $1.5 billion in annual sales across 73 countries, with nearly 40 percent coming from outside the U.S. and Canada.
Once the deal is completed, which is expected some time in the second half of this year, Authentic will convert the Lee business into a licensing model. The company is currently “in discussion with leading brand operators to support Lee’s existing business and expand it across content, experiences and heritage-driven lifestyle categories,” Authentic said in a statement about the deal.
“What makes Lee so compelling is its legacy,” said Jamie Salter, founder and executive chairman 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. At Authentic, we focus on preserving what consumers love about their favorite brands while putting the right partners, distribution and marketing strategies behind them to drive long-term growth. Lee is exactly the kind of brand we are built for.”
