Editor’s note: This story has been updated to reflect additional information.
Authentic Brands Group (ABG) has purchased the 137-year-old Lee denim brand from Kontoor Brands, Inc. ABG, with a brand portfolio that also includes Dockers, Reebok, Champion and Lucky Brand, just named Matt Maddox as its new CEO as the company prepares for an IPO, as reported in our sister publication Shop Eat Surf Outdoor.
ABG will buy the business for up to $1 billion, including an initial transaction value of $750 million and a $250 million earnout opportunity in future years, based on Lee’s performance under ABG’s ownership. The Lee brand, which was founded in 1889, generates approximately $1.5 billion in annual retail-equivalent sales across 73 countries, with nearly 40% of these sales coming from outside the U.S. and Canada.
“What makes Lee so compelling is its legacy,” said Jamie Salter, Founder and Executive Chairman of ABG in a statement. “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. Les is exactly the kind of brand we are built for.”
Following the acquisition, ABG plans to convert the Lee business into a licensing model and leverage its brand-building skills, network of 1,700+ partners and a strong marketing and storytelling platform to support the brand. ABG is in discussions with leading brand operators to support Lee’s existing business and expand it across content, experience and heritage-driven lifestyle categories.
