Authentic completes scquisition of Lee and unveils global licensing partners

US brand development and entertainment company Authentic Brands Group (Authentic) has finalised the acquisition of the intellectual property of heritage denim brand Lee from Kontoor Brands.

Authentic signed a definitive agreement to purchase the intellectual property in May. Since entering the agreement, the group has established partnerships across key regional territories to manage the brand’s global apparel operations under its licensing framework.

“We are thrilled to welcome Lee to the Authentic family,” said Jamie Salter, founder and executive chairman of Authentic. “Lee has the heritage, recognition and consumer loyalty we look for in a brand. By connecting Lee to Authentic’s global platform and the right partners in key markets, we see a significant opportunity to expand its reach through content, experiences and new product categories.”

Licensing partnerships established across global markets

Under the transition, Authentic has secured operating agreements with four primary regional apparel partners:

• One Jeanswear Group: the US and Canada
• Experience Group: Europe
• HiMaxx: mainland China, Hong Kong SAR and Macao SAR
• Union Group: Mexico

These regional partners will oversee product development, sourcing and distribution across their designated markets. Additional licensees across the global network of Authentic are slated to enter agreements to expand Lee into adjacent categories, including activewear, workwear and lifestyle lines.

“We now have a more focused, growth-oriented portfolio positioned to deliver stronger returns for our shareholders,” stated Scott Baxter, chief executive officer and chairman of the board of Kontoor Brands.

“We are grateful to the Lee team for their contributions to Kontoor and wish them well as they write the next chapter of the brand’s iconic history,” Baxter added.

Founded in 1889, Lee is an established name in global denim. The brand generates approximately 1.50 billion dollars in annual retail-equivalent sales across 73 countries, with nearly 40 percent of revenue originating outside the US and Canada.