Kontoor Brands, Inc. Form 8-K Filing

Kontoor Brands, Inc. has entered into a Stock Purchase Agreement to sell all outstanding shares of its subsidiary, The H.D. Lee Company, Inc., to ABG-Storm LLC, an affiliate of Authentic Brands Group. The sale is valued at $750 million in cash at closing, with an additional $250 million earnout opportunity based on the performance of the Lee business over five years. The transaction, approved by the board, is expected to close in the second half of 2026, subject to customary closing conditions, including regulatory approvals. Proceeds from the sale will be used to reduce debt and potentially return capital to shareholders through share repurchases. The agreement includes customary representations, warranties, and indemnification provisions, with a termination date of February 1, 2027, if the closing has not occurred. Kontoor Brands will provide transition services for the Lee business post-closing.