Kontoor Brands Inc. (KTB) used Bryan S. Schultz of Foley & Lardner LLP for counsel on an agreement to sell its Lee business to private equity-backed Authentic Brands Group for up to $1 billion in a deal announced on Thursday, May 21. Authentic also put out a release on the deal.

Kontoor, a Greensboro, N.C.-based lifestyle apparel company that produces apparel products, said the transaction includes an initial value of $750 million and a potential $250 million earnout based on Lee’s performance under Authentic.

Morgan Stanley gave financial advice to Kontoor, where general counsel Thomas L. Doerr Jr., deputy general counsel Lacee Ecker, associate general counsel – litigation, employment and compliance Sara Whitehead and senior counsel – intellectual property and sustainability William Ryan are on the transaction. Ecker is also the general counsel for the Lee and Wrangler brands.

Kontoor turned to Morgan Stanley and Foley’s Schultz last year on its purchase of Helly Hansen AS from Canadian Tire Corp. Ltd. for $900 million (C$1.28 billion). Kontoor used Morgan Stanley for financial advice and on that deal. VF Corp. (VFC) spun out Kontoor in 2019.

Ravi Agarwal, Annie C. Cataldo, Sara B. Zablotney and Michael E. Weisser of Kirkland & Ellis LLP are counsel to to Authentic. Agarwal and Weisser also worked with Authentic on Saks Global’s acquisition of Neiman Marcus Group Inc. in 2024.

Founded in 1889, Lee is a denim and workwear brand known for jeans, casual apparel and heritage workwear. The brand generates about $1.5 billion in annual retail-equivalent sales in 73 countries, with nearly 40% of sales coming from outside the U.S. and Canada.

Authentic plans to convert Lee into a licensing model after closing, using its brand management platform, marketing capabilities and network of more than 1,700 partners. Authentic said it is in discussions with brand operators to support Lee’s existing business and expand the brand across content, experiences and heritage-driven lifestyle categories.

Kontoor said the divestiture is intended to sharpen its brand portfolio and increase investment capacity behind Wrangler and Helly Hansen. The company said proceeds are expected to be used for voluntary term loan repayments and additional share repurchases under its $750 million authorization.

New York-based Authentic is a brand development, marketing and entertainment platform that owns a portfolio of more than 50 brands, generating roughly $32 billion in annual sales. Its backers include General Atlantic LLC, CVC Capital Partners Ltd., HPS Investment Partners LLC, BlackRock Inc. (BLK), Simon Property Group Inc. (SPG), Leonard Green & Partners LP and Brookfield Property Partners LP.

Authentic and Kontoor expect to close the deal in the second half of 2026, subject to regulatory approvals and customary closing conditions.

Editor’s note: The original version of this article was published May 21, 2026, on The Deal’s premium subscription website. For access, log in to TheDeal.com or use the form below to request a demo.