Authentic Brands Group (ABG) has agreed to acquire iconic denim brand Lee from Kontoor Brands for up to $1 billion, comprising a $750 million upfront payment and an earn-out of up to $250 million. The transaction, expected to close in the second half of 2026, will see ABG transition Lee into its global licensing model — leveraging over 1,700 partners — joining a portfolio that already includes Guess and Lucky Brand. For Kontoor, divesting Lee — which projects $750 million in 2026 sales — frees capital to focus on Wrangler and Helly Hansen. Founded in 1889, Lee was spun off from VF Corp alongside Wrangler in 2019 to form Kontoor, which acquired Helly Hansen for approximately $900 million last year.

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