May 21 (Reuters) – Kontoor Brands said on Thursday it had agreed to sell its Lee denim brand for up to $1 billion to Authentic Brands Group, as the apparel maker pushes to streamline its operations and focus investment on higher-growth brands such as Wrangler.
The deal includes an initial value of $750 million and a potential $250 million earnout tied to Lee’s future performance under Authentic’s ownership, Kantoor Brands said.
Authentic Brands, which owns a portfolio of fashion and lifestyle brands including Reebok and Guess, on Wednesday named Matt Maddox as its new chief executive officer, succeeding Jamie Salter.
Morgan Stanley is serving as financial adviser to Kontoor, while Foley & Lardner is acting as legal counsel.
The deal is expected to close in the second half of 2026.
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Maju Samuel)
