Authentic Brands Group announced a definitive agreement to acquire the Lee denim brand from Kontoor Brands Inc. (NYSE: KTB), according to a company statement.

Lee generates approximately $1.5 billion in annual retail-equivalent sales across 73 countries, with nearly 40% of sales coming from outside the United States and Canada. The brand was founded in 1889 and operates as a denim and workwear company.

"What makes Lee so compelling is its legacy," said Jamie Salter, founder and executive chairman of Authentic Brands Group. "It's one of the most important names in denim, with more than a century of heritage, consumer awareness and cultural relevance already built in."

Upon closing, Authentic Brands Group plans to convert Lee's business into a licensing model using its network of more than 1,700 partners. The company stated it is in discussions with brand operators to support Lee's existing business and expand into content, experiences and lifestyle categories.

The transaction requires standard closing conditions, including regulatory approval, and is expected to close in the second half of 2026. Kirkland & Ellis LLP serves as legal advisor to Authentic Brands Group, while Morgan Stanley acts as financial advisor and Foley & Lardner LLP provides legal counsel to Kontoor Brands.

Authentic Brands Group operates a portfolio of more than 50 brands that generate over $36 billion in annual systemwide retail sales worldwide. Its brands include Reebok, Champion, Sports Illustrated, Brooks Brothers, and Nautica, among others.