Kontoor Brands completed its sale of the Lee business to Authentic Brands Group on Tuesday, closing a deal announced in May.
The companies announced the deal at a maximum value of $1 billion. The agreement called for $750 million in cash at closing, plus a potential earnout of up to $250 million tied to Lee’s performance over five years. An earnout is an additional payment tied to future results, so its full amount was not fixed at closing. Kontoor’s closing announcement confirmed the sale but did not separately state how much cash was paid.
Authentic said it acquired Lee’s intellectual property and signed regional apparel operators to develop the brand through a licensing model. Kontoor Chairman and CEO Scott Baxter called the company’s remaining lineup a “more focused, growth-oriented portfolio.” He said it was positioned to deliver stronger returns for shareholders.
