Levi’s Offloading Dockers, Authentic To Pick Up Brand
Levi Strauss & Co. is selling off its Dockers business to Authentic Brands Group for $311 million.
This will expand the Authentic portfolio, which currently includes such brands as Reebok, Champion, Nautica and Eddie Bauer.
Michelle Gass, president and CEO of Levi’s, said the transaction will help the company focus its efforts on its direct-to-consumer strategy, growing its international presence and further investing in the women’s and denim lifestyle apparel categories.
This includes scaling its Beyond Yoga brand to a billion-dollar brand, according to goals shared by Gass in recent Levi’s earnings conversations.
Also: Levi’s streamlines decision-making with several leadership shifts, including a new CDTO
It’s part of an ongoing effort to optimize the Levi’s portfolio. Recent moves have included exiting the Denizen brand and announcing the exit of footwear.
More About the Deal
Levi’s launched Dockers in 1986 and expanded internationally in the early 90s by introducing a women's line.
The deal, which is expected to close around the end of July, could reach up to $391 million through an $80 million earn-out strategy, depending on Dockers’ future performance under Authentic.
“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,” said Gass in a statement.
Jamie Salter, founder and CEO of Authentic, said Dockers has deep roots, high awareness and solid foundation in licensing, which will help the company grow the brand across a variety of categories.
