Authentic Brands Group (Authentic), the owner of the Eddie Bauer, Reebok, Quiksilver, Roxy, Forever 21, Aéropostale, Brooks Brothers, Lucky Brand, Nautica, and Nine West brands, and Levi Strauss & Co. (LS&Co.) has entered into a definitive agreement for LS&Co. to sell its Dockers brand to Authentic for an initial transaction value of $311 million, subject to customary adjustments and closing conditions, with the potential to reach up to $391 million through an $80 million earn-out opportunity in future years based on the performance of the Dockers business under Authentic’s ownership.
“The Dockers transaction further aligns our portfolio with our strategic priorities, focusing on our direct-to-consumer (DTC) first approach, growing our international presence and investing in opportunities across women’s and denim lifestyle,” said Michelle Gass, president and CEO, Levi Strauss & Co. “After a robust process, we are confident that we maximized the value of the business and that Authentic is the right organization to usher in the next chapter of growth for the Dockers brand. We thank the global Dockers team for their strong commitment and execution to building the brand, which continues to be the authority on khaki.”
With this agreement, LS&Co. said it is well positioned to reach its potential as a “best-in-class omni-channel 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. said in a media statement that it remains focused on driving long-term, sustainable, profitable growth across categories, channels and regions as it continues to deliver stakeholder value. The company said it intends to return approximately $100 million of the net cash proceeds from the transaction to shareholders through share repurchases, which aligns with its established capital allocation strategy.
“Dockers is a natural fit for the Authentic model,” said Jamie Salter, founder, chairman and CEO, Authentic Brands Group. “It’s a brand with deep roots, high awareness and a solid foundation in licensing, all things we look for when acquiring new brands. Dockers played a key role in shaping casual workwear as we know it today, and we see significant potential to build on that legacy and grow the brand across a variety of categories.”
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 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.
BofA Securities, Inc. is serving as financial advisor to LS&Co. Cleary Gottlieb Steen & Hamilton LLP is its legal advisor.
Image courtesy Dockers
