Kontoor Brands agreed on 21 May 2026 to sell its Lee denim business to Authentic Brands Group for up to $1bn, including $750m at closing.
Why Authentic Brands Group is buying Lee business (from Kontoor Brands)
Kontoor chief executive Scott Baxter called the sale a deliberate step to sharpen its brand portfolio and free investment for growth at Wrangler and Helly Hansen. Authentic intends to run Lee through its network of licensing partners.
“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.”
Deal terms and financing
The transaction carries an initial value of $750m plus an earnout of up to $250m in later years tied to Lee's performance under Authentic's ownership. Kontoor had started a competitive sale process in the first quarter and reports Lee as a discontinued operation.
Regulatory approvals and timing
Completion requires regulatory approvals and customary conditions and was expected in the second half of 2026.
Market context
Lee generates about $1.5bn of retail-equivalent sales across 73 countries. Authentic's earlier purchases include Champion, Hunter and Reebok.
