May 20 (UPI) — Clothing company Levi Strauss announced Tuesday it will sell its Dockers line to Authentic Brands Group in a more than $300 million acquisition.
The brand management firm Authentic, under the deal terms, will take over the intellectual rights to Dockers in a $311 million initial transaction. Centric Brands, with offices around the globe handling other higher-end brands like Calvin Klein and Tommy Hilfiger, will assume operations for Dockers in manufacturing, sourcing and distribution through a new licensing agreement.
Levi’s CEO Michelle Gass said after a “robust process,” the California-headquartered company was “confident” it had maximized its own value through the sale and that Authentic was “the right” group to “usher in the next chapter of growth” for the Dockers brand.
“The Dockers transaction 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,” Gass, who moved over to Levi Strauss at the end of 2022 as CEO of Kohls, said Tuesday in a release.
Dockers, via Levi’s, reported around $67 million in revenue for the three-month period ending on March 2.
“Few brands own a category the way Dockers does, yet still have so much room to grow,” stated Matt Maddox, president of Authentic. “Its legacy in casualwear gives it a strong foundation, but the real opportunity lies in reimagining the brand for a new generation. Through our global platform and deep licensing network, we’re committed to stewarding the brand into its next era of growth and relevance.”
Levi’s, which in 1986 created the line, revealed in October it was considering offloading Dockers, known primarily for its khaki’s, as a renewed focus is getting placed on growing its Beyond Yoga athleisure brand.
Additionally, Levi’s could in future years make more than $390 million through an $80 million payout plan based on Dockers’ sales performance under Authentic’s portfolio, which owns 50 other global brands like Reebok, Nautica, Forever 21 and Sports Illustrated.
“Dockers represents everything we look for in a brand partnership — iconic heritage, consumer loyalty and growth potential,” said Centric Brands CEO Jason Rabin.
“We’re bringing the same strategic expertise to Dockers that we’ve applied to our successful brand portfolio that includes design, strategic sourcing and an extensive wholesale network,” he added.
The sale is expected to close on or around July 31, according to company officials.
