Authentic Brands buying Dockers from Levi Strauss for more than $300M

Authentic Brands Group and Levi Strauss & Co. have agreed to a nine-figure deal for the former to acquire Dockers.

Authentic announced Tuesday it was purchasing the intellectual property of the well-known khaki and chinos brand that Levi Strauss & Co. created in the 1980s.

Levi Strauss said its sale of Dockers had an “initial” value of $311 million “subject to customary adjustments and closing conditions.”

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FILE PHOTO: Levi’s store logo is seen on a shopping center at the outlet village Belaya Dacha outside Moscow, Russia, Apr. 23, 2016.  (REUTERS/Grigory Dukor/File Photo / Reuters)

Authentic’s purchase of the IP and Dockers’ U.S. and Canadian operations is anticipated closing 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 legacy in casual wear gives it a strong foundation, but the real opportunity lies in reimagining the brand for a new generation,” Authentic President Matt Maddox said of Dockers. “Through our global platform and deep licensing network, we’re committed to stewarding the brand into its next era of growth and relevance.”

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Its licensing network includes over 1,700 partners, according to the company.

For Levi Strauss, CEO Michelle Gass said selling Dockers “further aligns our portfolio with our strategic priorities, focusing on our direct-to-consumer first approach, growing our international presence and investing in opportunities across women’s and denim lifestyle.”

The sale of Dockers to Authentic comes over seven-and-a-half months after Levi Strauss indicated it was looking into “strategic alternatives” for the brand.

Authentic Brands Group (ABG) logo is seen on a smartphone and a PC screen in the background.  (Pavlo Gonchar/SOPA Images/LightRocket via Getty Images / Getty Images)

Gass said during Levi Strauss’ earnings call in October that its decision to do so was “all about focus,” adding that the company’s “intention going forward is to really amplify our focus on the Levi’s brand and accelerate Beyond Yoga.”

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Authentic has tapped Centric Brands to “serve as the operating partner” for Dockers “across key categories” like 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, such as Reebok, Juicy Couture and Sperry.