Business
Kontoor Brands Enters Into Definitive Agreement to Sell Lee® Business to Authentic Brands Group
Kontoor Brands Enters Into Definitive Agreement to Sell Lee® Business to Authentic Brands
About this update from Kontoor Brands, Inc.
[{"type":"text","content":"\nKontoor Brands, Inc. (NYSE: KTB) today announced it has signed a definitive agreement to sell the Lee® business to Authentic Brands Group (Authentic) for up to $1 billion, including an initial transaction value of $750 million and a $250 million earnout opportunity in future years based on the performance of Leeunder Authentic’s ownership. The transaction is subject to required regulatory approvals and customary closing conditions.\n\n\n“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,” said Scott Baxter, President, Chief Executive Officer and Chairman of the Board of Kontoor Brands. “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.”\n\n\n“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,” added Baxter.\n\nTransaction Highlights\nThe divestiture of the Lee businessbuilds on Kontoor’s success and advances the Company’s strategic and financial growth agenda. Highlights include the following:\n\nStreamlined Brand Portfolio Architecture Allows for Greater Investment in High-Performing, Strategically Aligned Brands\n\nBrand portfolio with deep heritage, authenticity and category authority in denim, outdoor and workwear\n\n\n\nSharpens focus on Wrangler®and Helly Hansen®, two iconic brands with significant global growth potential\n\n\n\nEnables more concentrated brand investment and improved execution\n\n\n\nImproves returns on strategic initiatives by aligning resources behind the Company’s higher-performing assets\n\nFavorably Shifts Kontoor’s Portfolio Towards Higher Growth Categories, Channels, Geographies and Consumers\n\nRepositions the portfolio towards structurally higher-growth segments anchored in denim, outdoor and workwear\n\n\n\nEnhances Kontoor’s long-term growth and profitability profile, reinforcing its commitment to delivering long-term value for shareholders\n\nIncreases Capital Allocation Optionality\n\nReinforces Kontoor’s commitment to a shareholder-focused...