What transaction did Kontoor Brands (NYSE:KTB) announce regarding the Lee® brand?

Kontoor Brands signed a definitive agreement to sell its Lee® apparel business to Authentic Brands Group for up to $1 billion, including $750 million upfront and a $250 million earnout contingent on future brand performance.

How is the $1 billion purchase price structured?

The deal consists of a $750 million upfront payment and a $250 million earnout, which will vest over future years depending on the Lee brand’s financial performance under the new ownership.

Why is Kontoor Brands selling the Lee® business?

The divestiture is part of a strategic refocus, allowing Kontoor to reallocate capital and resources toward growing its remaining high-profile banners.

How does this sale fit into Kontoor Brands’ corporate history?

Kontoor Brands spun off from VF Corporation in 2019, and selling Lee® represents a further narrowing of the company’s portfolio to prioritize its other core apparel brands.

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Kontoor Brands agrees to sell Lee Denim to Authentic Brands Group for up to $1B

Q: What are the conditions for the Lee® brand sale to close?

The transaction is subject to customary closing conditions and required regulatory approvals before finalization.

Written by Jon CuthbertPublished May. 21 2026Last Updated May. 21 2026

Kontoor Brands (NYSE:KTB) has signed a definitive agreement to sell its iconic Lee® apparel business to Authentic Brands Group in a transaction valued at up to $1 billion, marking a significant strategic shift for the apparel manufacturer.

The purchase price includes an initial upfront transaction value of $750 million, alongside a $250 million earnout opportunity.

The additional payout is structured to vest in future years, contingent upon the performance of the Lee brand under its new ownership.

Finalization of the deal remains subject to customary closing conditions and required regulatory approvals.

The divestiture represents a deliberate narrowing of focus for Greensboro, North Carolina-based Kontoor, which spun off from VF Corporation in 2019.

By shedding the Lee label, executive leadership intends to reallocate capital and internal resources toward expanding its remaining high-profile banners.