Authentic Brands to acquire Lee Jeans in deal worth up to $1bn
Authentic Brands Group is to acquire Lee Jeans in a transaction valued at up to $1 billion as it continues to expand its portfolio of fashion brands.
The owner of the likes of Reebok and Juicy Couture said it regarded Lee as a natural fit for its global platform.
Subscribe to TRBAuthentic is acquiring the business from Kontoor Brands, which is divesting Lee to enable it to streamline its brand portfolio as it looks to invest in its “high performing, strategically aligned” brands.
Scott Baxter, president, chief executive and chairman of the board of Kontoor Brands, said: ” 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,
”By increasing our focus on Wrangler and Helly Hansen, two iconic brands with significant white space opportunities, we are better positioned to fuel a higher growth profile and create even greater value for our shareholders.”
On completion of the transaction later this year, Authentic is planning to convert the Lee business into a licensing model. The company said it is currently in discussions with leading brand operators to support Lee’s existing business and expand it across content, experiences and heritage-driven lifestyle categories.
Lee generates around $1.5 billion in annual retail-equivalent sales across 73 countries, with nearly 40% coming from outside the US and Canada.
Jamie Salter, founder and executive chairman of Authentic, said: “What makes Lee so compelling is its legacy. 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.”
