Authentic Brands Group Signs Definitive Agreement to Acquire Lee®

Authentic Brands Group signed a definitive agreement to acquire the Lee denim brand from Kontoor Brands (NYSE:KTB).

Rhea-AI Summary

Authentic Brands Group signed a definitive agreement to acquire the Lee denim brand from Kontoor Brands (NYSE:KTB). Lee generates about $1.5 billion in annual retail-equivalent sales across 73 countries, with nearly 40% outside the US and Canada.

Authentic plans to shift Lee to a licensing model, using its network of over 1,700 partners to support and expand the brand. The deal is subject to closing conditions, including regulatory approval, and is expected to close in the second half of 2026.

Positive

• Authentic to acquire Lee brand from Kontoor Brands
• Lee generates approximately $1.5 billion in annual retail-equivalent sales
• Lee operates in 73 countries, with about 40% sales outside North America
• Authentic plans licensing model leveraging 1,700+ partner network

Negative

• Transaction subject to standard closing conditions and regulatory approval
• Expected closing only in the second half of 2026

Argus May 21 session

+6.59% close to close Open Argus

Details

News Market Reaction – KTB

On May 21, the day this news came out, KTB closed 6.59% above the previous close.

Data tracked by StockTitan Argus for the May 21 session.

Market Context

On May 21, the day this news came out, the stock closed 6.6% above the previous close. A strong posi...

Analysis

On May 21, the day this news came out, the stock closed 6.6% above the previous close. A strong positive reaction aligns with KTB’s history of constructive responses to portfolio transactions, as seen with prior Helly Hansen deals averaging about 2.77% moves. Investors would likely weigh Lee’s $1.5 billion retail-equivalent footprint against KTB’s strategy of focusing on remaining brands. With shares still about 25.18% below the 87.00 52-week high, positioning and execution risk around closing in the second half of 2026 could influence sustainability.

Key Figures

Lee annual sales: $1.5 billion Countries: 73 countries Sales mix ex-North America: 40% +2 more

Lee annual sales

$1.5 billion

Annual retail-equivalent sales for Lee brand

Countries

73 countries

Lee brand global presence

Sales mix ex-North America

40%

Share of Lee sales outside US and Canada

Partner network

1,700 partners

Authentic’s global partner network to support Lee licensing

Expected closing timing

Second half 2026

Target closing window for Lee transaction

Previous Acquisition Reports

2 past events · Latest: Jun 02

Same Type 2 events

1. Jun 02

   Helly Hansen deal close

   24h Move

   +1.4%

   Completion of Helly Hansen acquisition, expected to boost revenue and earnings.

2. Feb 19

   Helly Hansen acquisition

   24h Move

   +4.1%

   Definitive agreement to buy Helly Hansen for about $900M with growth benefits.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

definitive agreement, intellectual property, licensing model, regulatory approval

4 terms

definitive agreement financial

"today announced a definitive agreement to acquire Lee"

A definitive agreement is a formal, legally binding document that outlines the final terms and conditions of a deal or transaction, such as a sale or partnership. It acts like a detailed contract that confirms all parties have agreed on the key details, making the deal official. For investors, it signals that the agreement is settled and moving toward completion, providing clarity and security about the transaction.

intellectual property technical

"sports, fashion, media and entertainment intellectual property in the world"

Intellectual property are legal rights that protect creations of the mind—such as inventions, brand names, designs, software, or secret formulas—giving the owner control over who can use, copy or sell them. For investors, IP is like owning a blueprint or recipe: it can generate steady income through exclusive sales or licensing, boost a company’s competitive edge and valuation, and also create costs or risks if rights must be defended or challenged in court.

licensing model financial

"plans to convert the Lee business into a licensing model"

A licensing model is the set of rules a company uses to allow others to use its intellectual property—such as software, technology, brands, or patents—in exchange for fees, royalties, or other payments. Like renting out a house instead of selling it, the model determines how a company converts its assets into recurring or one-time revenue, controls use and geographic scope, and shares risk. Investors care because the structure—exclusive vs. non‑exclusive, fixed fee vs. royalty, short vs. long term—directly affects predictability of cash flow, growth potential, and valuation.

regulatory approval regulatory

"including regulatory approval, and is expected to close"

Regulatory approval is the official permission given by government agencies or authorities that allows a product, service, or business activity to be legally operated or sold. It is important to investors because receiving approval often indicates that a product has been reviewed for safety and compliance, which can influence its success and the company’s prospects in the market. Without this approval, launching or selling certain products may be restricted or prohibited.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, May 21, 2026 /PRNewswire/ -- Authentic Brands Group (Authentic), a global brand and entertainment platform, today announced a definitive agreement to acquire Lee, one of the most recognized and enduring names in global denim, from Kontoor Brands, Inc. (NYSE: KTB).

As the owner of some of the most iconic and beloved sports, fashion, media and entertainment intellectual property in the world, Authentic sees Lee as a natural fit for its global platform. Lee is a pioneer in denim and workwear with more than a century of cultural influence, innovation and craftsmanship behind it. Today, the brand generates approximately $1.5 billion in annual retail-equivalent sales across 73 countries, with nearly 40% coming from outside the US and Canada.

"What makes Lee so compelling is its legacy," said Jamie Salter, Founder and Executive Chairman of Authentic. "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. Lee is exactly the kind of brand we are built for."

Upon closing of the transaction, Authentic plans to convert the Lee business into a licensing model, leveraging its brand-building expertise, network of more than 1,700 best-in-class partners and powerful marketing and storytelling platform. The Company is in discussions with leading brand operators to support Lee's existing business and expand it across content, experiences and heritage-driven lifestyle categories.

The transaction is subject to certain standard closing conditions, including regulatory approval, and is expected to close in the second half of 2026.

Kirkland & Ellis LLP is acting as legal advisor to Authentic. Morgan Stanley is acting as financial advisor, and Foley & Lardner LLP is acting as legal advisor to Kontoor Brands, Inc.

Kontoor Brands, Inc. has also issued a separate press release regarding the transaction, available here.

About Authentic Brands Group

Authentic Brands Group (Authentic) is a leading sports, media, entertainment and lifestyle platform. As the owner of some of the most iconic and beloved intellectual property in the world, Authentic acquires and invests in brands to create long-term value for all of its stakeholders.

A digital-first, asset-light platform, Authentic sits at the intersection of culture, commerce and technology. It brings brands to life and cultivates fandom through powerful storytelling, premium content and unforgettable live experiences. Together with more than 1,700 best-in-class licensing partners across 150 countries and an expansive distribution network, Authentic's brands drive more than $36 billion in annual systemwide retail sales worldwide.

Authentic's diversified portfolio spans more than 50 brands and reaches nearly one billion social media followers. Its roster includes Reebok, Champion, Shaquille O'Neal, David Beckham, Kevin Hart, Sports Illustrated, Elvis Presley, Muhammad Ali, Marilyn Monroe, GUESS, Aéropostale, Nautica, Eddie Bauer, Lucky Brand, Nine West, Brooks Brothers, Juicy Couture, Vince Camuto, Izod, Van Heusen, Dockers, Ted Baker, Hart Schaffner Marx, Vince, Barneys New York, Judith Leiber, Quiksilver, Spyder, Billabong, Volcom, Roxy, RVCA, DC Shoes, Prince, Sperry and Hunter.

For more information, visit corporate.authentic.com. Follow Authentic on LinkedIn, Instagram and WeChat.

About Lee
Founded in 1889, Lee is one of the world's most iconic denim and casual apparel brands. Known for its heritage craftsmanship, innovation and timeless style, Lee has shaped generations of culture and self-expression through authentic American design.

Contact:
Haley Steinberg
hsteinberg@authentic.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/authentic-brands-group-signs-definitive-agreement-to-acquire-lee-302778878.html

SOURCE Authentic Brands Group

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Kontoor Brands (KTB) announce about the sale of the Lee brand on May 21, 2026?

Kontoor Brands announced that Authentic Brands Group signed a definitive agreement to acquire the Lee denim brand. According to Authentic, Lee is a long-established global denim name with about $1.5 billion in annual retail-equivalent sales across 73 countries.

How large is the Lee brand being acquired by Authentic Brands Group from Kontoor Brands (KTB)?

Lee generates approximately $1.5 billion in annual retail-equivalent sales worldwide. According to Authentic, the brand is sold in 73 countries, with nearly 40% of sales coming from markets outside the US and Canada, highlighting its global footprint.

When is the Authentic Brands Group acquisition of Lee from Kontoor Brands (KTB) expected to close?

The Lee acquisition is expected to close in the second half of 2026. According to Authentic, the deal remains subject to standard closing conditions, including regulatory approval, which could affect timing and completion certainty for investors tracking KTB.

What business model will Authentic Brands Group use for Lee after acquiring it from Kontoor Brands (KTB)?

Authentic plans to convert Lee into a licensing-based business model after closing. According to Authentic, it intends to leverage its network of more than 1,700 partners and its marketing platform to support Lee and expand into heritage-driven lifestyle categories.

How international is Lee’s business prior to its sale by Kontoor Brands (KTB)?

Lee has a broad international presence before the planned sale to Authentic Brands Group. According to Authentic, the brand operates in 73 countries, with nearly 40% of its approximately $1.5 billion retail-equivalent sales generated outside the US and Canada.

What strategic rationale did Authentic Brands Group give for acquiring Lee from Kontoor Brands (KTB)?

Authentic described Lee as a natural fit for its global brand platform. According to Authentic, Lee’s legacy, heritage in denim and workwear, and strong consumer awareness align with its strategy of growing established brands through partners, distribution, and marketing.