Kontoor to Sell Lee Denim to Authentic Brands for $1B
Kontoor Brands has agreed to divest its Lee denim business to Authentic Brands Group for an initial 750 million dollars plus performance-linked earnouts. The apparel maker plans to streamline operations and focus on its higher-growth Wrangler brand following the expected close in late 2026.
KONTOOR BRANDS INC will sell its Lee denim brand to Authentic Brands Group for up to $1 billion to streamline operations. The deal includes an initial $750 million payment and a potential $250 million earnout based on future performance. The divestiture allows the apparel maker to focus resources on higher-growth labels like Wrangler.
### Streamlining the Portfolio for Growth The transaction consists of a fixed $750 million cash component and an additional $250 million tied to performance targets. Kontoor shares rose 1% during the premarket session on Thursday following the announcement. The company began the divestment process during the first quarter to align its portfolio with high-opportunity segments.
