Authentic Brands Group has agreed to acquire Lee, the Greensboro, North Carolina-based denim brand, from Kontoor Brands. Backed by CVC Capital Partners, General Atlantic, and Leonard Green & Partners, Authentic operates a global brand and entertainment platform. Lee generates roughly $1.5 billion in annual retail-equivalent sales across 73 countries, with almost 40% coming from outside the US and Canada.

At the deal's closing, Authentic plans to convert the Lee business into a licensing model, moving away from traditional retail operations. The transaction is expected to close in the second half of 2026. This shift signals Authentic's strategy of acquiring well-known brands and restructuring them into asset-light licensing arrangements.

The move reflects a broader industry trend of PE-backed platforms monetizing brand equity rather than running retail operations. Lee's global footprint across 73 markets gives Authentic meaningful distribution reach, even as it cedes control over day-to-day retail decisions.