Kantoor brands to sell its Lee Denim business to authentic brands group in a deal $1 billion.
Key Highlights
- The Lee brand to be sold by Kontoor Brands
- The combined value of the two businesses could come to $1 billion.
- Reebok and guess to own by Authentic Brands
- The transaction is expected to be completed in the second half of 2026.
Lee Denim Business Sold Off in Giant Deal
On Thursday, Kontoor Brands announced that it was selling its Lee denim business to Authentic Brands Group in a deal worth up to $1 billion. The deal features $750 million upfront with a potential additional festive earnout of $250 million could return on the future visibility of Lee as owned by Authentic. The companies expect the transaction to close in the second half of 2026.
Company Turns Its Attention To Higher-Growth Brands
Kantoor said that this sale is a part of its plan to focus more on growth of other brands like Wrangler and operations. The firm has been reinvesting back into stronger growth potential brands and products whilst streamlining its overall business. Authentic Brands owns about 50 other brands across apparel and lifestyle categories, which also includes Reebok and Wilson in its international division. It also continues to expand its presence through acquisition or licensing.
Authentic Brands expands its fashion lineup with the acquisition of Lee
The transaction follows the appointment of Matt Maddox as CEO of Authentic Brands, succeeding company founder Jamie Salter. According to analysts, the acquisition will strengthen the footprint of Authentic in the apparel market while allowing Kantoor more attention towards its growth..
FAQs
- Who is purchasing Lee denim?
The Lee portion of the business is being purchased by Authentic Brands Group from Kontoor brands.
2. Why is Kontoor selling Lee?
The company is placing a greater focus on brands that can grow quicker, such as Wrangler.
3. What other brands come under Authentic Brands?
The brands like Reebok and Guess come under Authentic Brands.
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