(RTTNews) - Apparel company Levi Strauss & Co. (LEVI) and Authentic Brands Group announced Tuesday that they have entered into a definitive agreement for Levi Strauss to sell Dockers brand to Authentic for an initial transaction value of $311 million, subject to customary adjustments and closing conditions.
The consideration has the potential to reach up to $391 million through an $80 million earnout opportunity in future years based on the performance of the Dockers business under Authentic's ownership.
With this agreement, Levi Strauss is well positioned to reach its potential as a best-in-class omnichannel retailer as it continues to evolve the globally iconic Levi's brand from jeans to denim lifestyle while also scaling the Beyond Yoga brand.
Levi Strauss intends to return approximately $100 million of the net cash proceeds from the transaction to shareholders through share repurchases, in line with its established capital allocation strategy.
The transaction remains subject to customary closing conditions and is expected to close on or around July 31, 2025, for the Dockers intellectual property and operations in the U.S. and Canada, and on or around January 31, 2026, for the remaining Dockers operations.
In addition, Levi Strauss will provide certain transition services to Authentic and its partners for Dockers through a limited transition period.
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