Mergers & Acquisitions ·
Kontoor Brands completes sale of Lee business to Authentic Brands Group for $750 million
KTBKontoor Brands, Inc.
Kontoor Brands completed the previously announced sale of all outstanding shares of its subsidiary The H.D. Lee Company, Inc., to ABG-Storm LLC, an affiliate of Authentic Brands Group. The company received approximately $698.2 million in cash at closing, subject to customary post-closing adjustments for cash, indebtedness, transaction expenses, and net working capital. Additionally, Kontoor is eligible for contingent earnout payments of up to $250 million based on the Lee business's performance over a five-year period. The company intends to use proceeds for debt reduction and share repurchases. Kontoor Brands operates as a global apparel company with deep authority in denim, outdoor, and workwear categories.