Levi Strauss & Co. announced that it completed the sale of the Dockers brand to Authentic Brands Group on February 27.
As reported, Authentic, on May 20, reached an agreement to acquire Dockers for an initial transaction value of $311 million, 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.
On February 24, Authentic announced a long-term strategic partnership with International Apparel Corporation (IAC) to drive the growth of Dockers across Central America, Ecuador, the Andean region, and select Caribbean markets. Authentic owns more than 50 lifestyle brands, including Reebok, Champion, Guess?, Aéropostale, Nautica, Eddie Bauer, Lucky Brand, Quiksilver, Spyder, Billabong, Volcom, Roxy, RVCA, DC Shoes, Prince, Sperry, and Hunter.
In its statement, Levi Strauss said the sale “sharpens LS&Co.’s focus on the Levi’s brand and Beyond Yoga, simplifying the portfolio and strengthening the company’s structural profitability. The divestiture aligns the company’s assets with its highest-return growth opportunities and reinforces its disciplined capital allocation approach. Given the company’s already strong cash position, LS&Co. is able to return the net cash proceeds to shareholders through existing accelerated share repurchase programs, while maintaining flexibility to invest in long-term growth.”
BofA Securities, Inc. served as LS&Co.’s financial advisor, and Cleary Gottlieb Steen & Hamilton LLP served as its legal advisor.
Image courtesy Dockers
