Authentic Brands Group has completed its acquisition of Lee’s intellectual property from Kontoor Brands, the parent company of Wrangler. The deal follows a definitive agreement announced in May and was valued at up to $1 billion.
Authentic has signed operating partners to develop Lee through its licensing model. One Jeanswear Group will serve the U.S. and Canada, Experience Group will cover Europe, HiMaxx will operate in mainland China, Hong Kong SAR and Macao SAR, and Union Group will handle Mexico.
The partners bring regional expertise in product development, sourcing and distribution. Authentic said it expects to add licensees from its global network and expand Lee into categories such as activewear, workwear and lifestyle products.
Founded in 1889, Lee generates approximately $1.5 billion in annual retail-equivalent sales across 73 countries, according to Authentic. Nearly 40 percent of those sales come from outside the U.S. and Canada. The company previously said Lee’s operations would remain headquartered in Greensboro, North Carolina.
Authentic’s portfolio includes brands such as Dockers, Reebok, Champion, Guess, Lucky Brand, Aeropostale and Nautica. It says its network comprises more than 1,700 licensees and strategic partners across 150 countries, and its brands generate more than $38 billion in annual systemwide sales worldwide.
Sources: WWD.