Kontoor Brands to Sell Lee® Business for up to $1 Billion

Kontoor Brands, Inc. has signed a definitive agreement to sell its Lee® business to ABG-Storm LLC, an affiliate of Authentic Brands Group, for up to $1 billion. The transaction includes an initial cash payment of $750 million at closing, with an additional $250 million earnout opportunity based on Lee's performance over a five-year period. The company plans to use the proceeds to accelerate debt reduction and return capital to shareholders through share repurchases, aiming to sharpen its brand portfolio and focus on higher-growth brands like Wrangler and Helly Hansen. The deal, unanimously approved by Kontoor's Board, is expected to close in the second half of 2026, subject to regulatory approvals.