Industry News
Levi Strauss Selling Dockers to Authentic Brands
Authentic Brands Group and Levi Strauss & Co. have agreed to a nine-figure deal for Authentic Brands Group to acquire the Dockers brand.
Authentic announced that it was purchasing the intellectual property of the well-known khaki and chinos brand created by Levi Strauss & Co. in the 1980s. Dockers will now join a portfolio that includes brands such as Reebok and Sperry.
Levi Strauss said its sale of Dockers had an “initial” value of US$311 million, “subject to customary adjustments and closing conditions.”
Authentic’s purchase of the IP and Dockers’ U.S. and Canadian operations is anticipated to close in late July, followed by the rest of the brand’s operations in January of next year, according to Levi Strauss.
Levi Strauss said it could fetch more from the planned sale to Authentic down the line through an $80 million earnout opportunity in future years based on the performance of the Dockers business under Authentic’s ownership.
Its licensing network includes over 1,700 partners, according to the company. The sale of Dockers to Authentic comes over seven and a half months after Levi Strauss indicated it was exploring “strategic alternatives” for the brand.Authentic has tapped Centric Brands to serve as the operating partner for Dockers across key categories, including workwear, dress shirts, and activewear, in the U.S. and Canada, according to the company.
Dockers will join the numerous brands already under Authentic’s portfolio, including Reebok, Juicy Couture, and Sperry.
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