Transaction Valued at up to $1 Billion, including $750 Million Initial Transaction Value

Portfolio Transformation Enables Kontoor to Shift Focus to Higher Growth Brands within Attractive Addressable Markets

Kontoor Brands, Inc. (NYSE:KTB) today announced it has signed a definitive agreement to sell the Lee® business to Authentic Brands Group (Authentic) for up to $1 billion, including an initial transaction value of $750 million and a $250 million earnout opportunity in future years based on the performance of Leeunder Authentic's ownership. The transaction is subject to required regulatory approvals and customary closing conditions.

Increases Capital Allocation Optionality

  • Reinforces Kontoor's commitment to a shareholder-focused capital allocation framework, including strategic and disciplined portfolio management and capital stewardship
  • Transaction proceeds are anticipated to be deployed through increased share repurchases under our $750 million authorization as well as voluntary term loan payments
  • Creates capacity for disciplined reinvestment behind significant organic growth opportunities
  • Strengthens the balance sheet and enhances financial flexibility

Transaction Details

The transaction was unanimously approved by the Board of Directors of Kontoor. The transaction is expected to close in the second half of 2026, subject to the receipt of required regulatory approvals and customary closing conditions.