Levi Strauss to sell Dockers to Authentic for $311M

Levi Strauss (LEVI) and Authentic Brands announced that they have entered into a definitive agreement for LS&Co. to sell Dockers to Authentic for an initial transaction value of $311M, subject to customary adjustments and closing conditions, with the potential to reach up to $391M through an $80M earnout opportunity in future years based on the performance of the Dockers business under Authentic’s ownership. With this agreement, LS&Co. is well positioned to reach its potential as an 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. LS&Co. remains focused on driving long-term, sustainable profitable growth across categories, channels and regions as it continues to deliver stakeholder value. LS&Co. intends to return approximately $100M 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 for the Dockers intellectual property and operations in the United States and Canada, and on or around January 31, 2026, for the remaining Dockers operations. In addition, LS&Co. will provide certain transition services to Authentic and its partners for Dockers through a limited transition period.