Authentic Brands Group confirms Lee Jeans acquisition

Authentic Brands Group has signed a definitive agreement to acquire denim brand Lee Jeans from Kontoor Brands, in a transaction valued at up to $1 billion (£735 million).

The deal, which is set to close in the second half of 2026, is still subject to regulatory approval. Once completed, Authentic plans to convert the Lee business into a licensing model, leveraging its expertise in the field.

For Kontoor, the divestiture of the Lee business forms part of its strategy to streamline its brand portfolio and drive global growth for its Wrangler and Helly Hansen brands.

The deal includes an initial transaction value of $750 million (£562.5 million) and a $250 million (£187.5 million) earn-out opportunity in future years based on the performance of Lee under Authentic’s ownership.

Authentic, which owns Reebok, Ted Baker and Champion, described Lee as a "pioneer in denim and workwear", making it a "natural fit" for its brand portfolio. The brand currently generates $1.5 billion (£1.125 billion) in annual retail-equivalent sales across 73 countries.

"What makes Lee so compelling is its legacy," commented Jamie Salter, Founder and newly appointed Executive Chairman of Authentic.

"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 favourite 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," he added.

Lee Jeans marks only the latest in a number of acquisitions that Authentic has made over the last couple of years. In 2025, Authentic acquired Dockers from Levi Strauss & Co. for $311 million (£232 million), after snapping up US heritage sportswear giant Champion in 2024, British heritage brand Hunter in 2023, and, in 2022, Reebok from Adidas.

There were also rumours in April suggesting it was looking into acquiring Converse.

Scott Baxter, President, Chief Executive Officer 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.

"I want to reinforce our commitment to support Lee through the sale process and to personally thank the Lee team for getting us to where we are today. We believe this is a great outcome for Kontoor, the Lee business and Authentic."

The announcement follows news earlier today of a leadership reshuffle at Authentic, with Salter moving into the position of Executive Chairman, and Matt Maddox, formerly President of Authentic, taking on the additional role of CEO. The company also announced that it has plans to IPO within the next 12 months.