Authentic Brands Group reportedly eyeing up Lee Jeans sale

Authentic Brands Group, the intellectual property company that owns brands from Reebok and Champion, to Guess, Forever 21, and Herve Leger, is reportedly in discussions with Kontoor Brands Inc. to purchase Lee Jeans.

Sources at WWD reported that Authentic Brands Group has been in exclusive talks to purchase Lee Jeans, but noted that a deal still had to be made, with Morgan Stanley investment banker Carmen Molinos overseeing the sale. 

Reports of the potential sale come less than a week after Kontoor Brands Inc. CEO and chairman Scott Baxter announced that the company was looking to divest Lee in order to focus on "opportunities with the greatest potential to maximise shareholder returns by aligning Kontoor's brand portfolio towards a higher growth profile.” 

Several companies have already shown interest in acquiring the denim label, according to a company statement from Kontoor, as it started a competitive process to divest Lee during the first quarter of the year. 

“We are confident in our ability to successfully complete a transaction this year, resulting in significantly more capital allocation optionality and accelerated growth as we drive enhanced shareholder returns into 2027 and beyond,” said Joe Alkire, Kontoor Brands’ executive vice president, chief financial officer, and global head of operations, in a statement last week.

Authentic Brands Group is believed to have been in exclusive talks with Kontoor and is thought to be in the midst of negotiating a deal, which may be finalized within the next few weeks or months.